Court of Appeals for the Fourth Circuit August 5, 1959, 7853 (Perry E. Bondy and Hattie Bondy v. Commissioner of Internal Revenue)

ALBERT V. BRYAN, District Judge.

The Tax Court rejected the petitioner’s contention that the receipt by him in 1953 from his solely owned corporation of the entire capital stock of a subsidiary corporation was not taxable, as income, because it was distributed in a plan of corporate reorganization — a “spin-off” to the tax versant — in which, by section 112(b) (11), Internal Revenue Code of 1939