Pierce Butler

“ They tend rather to suggest that taxpayers' returns are correct and may not arbitrarily be set at naught.
He also cites Rule 30 adopted by the Board: 'The burden of proof shall be upon the petitioner, except as otherwise provided by statute and except that in respect of any new matter pleaded in his answer, it shall be upon the respondent.' But there is nothing in it to suggest intention to require the taxpayer to prove not only that a deficiency assessment laid upon him was arbitrary and wrong, but also to show the correct amount. ”

“ It is conceivable that common stocks may actually sell on the market when preferred stocks in the same corporation are selling at less than par.' It was upon that basis, without specific findings of fact, that the Board made the redetermination at the figure set by the Commissioner. ”

“ No opposing evidence was offered. On the facts shown, the taxpayer maintained that, as total cost was less than $100 per share for the preferred having prior rights to that extent on liquidation, the common stock had no value. Rejecting that contention, the Board of Tax Appeals filed a memorandum opinion in which it said: 'It may well be that the properties acquired or all the classes of stocks received by the petitioner were worth only $96,030 * * * and yet the preferred stock * * * may have had the value of $48,771.16. ”