The backdrop in such a case has to a good the amount revolved around the applying of Section 332. From the Court’s thoughts, one to Area was not appropriate.
Specific disagreement would-be produced your type of notice kept by depositor-shareholders wasn’t a class off stock into the concept of Section 332 hence merger ranging from Hollywood and you may Family was the latest merger away from a parent and you can a completely-owned subsidiary. When you are including result is it is possible to, brand new Judge seems you to definitely as, as a matter of fact, the business out of Movie industry went on home based rather than disruption, the need for this new set-aside to possess money owed went on and you can did maybe not quit and you will, therefore, brand new set aside really should not be recovered so you can money.
A peek at the brand new circumstances, such as for example two of that it Routine, verifies which influence. 2d 47 (9th Cir. 1961); Calavo, Inc. vmissioner from Interior Funds, 304 F.2d 650 (9th Cir. 1962); and you may Owners Government Discounts and you will Mortgage Connection out-of Cleveland v. United states, 290 F.2d 932 (Judge from Says 1961).
In the second issues [sic] new proprietor of the investment continues on in existence, even though when you look at the an adjusted setting, and you may continues to experience the risk of bad loans losses
*136 In the Western Seattle, this new taxpayer try involved in the purchases of their assets pursuant to help you Point 337. Read more
