The taxpayer transferred mining concessions to a newly-incorporated company in consideration for shares of the company contemporaneously with an initial public offering of shares of the company.
The decision of the Commissioners that the shares acquired by the taxpayer on the transfer should be valued at the end of the accounting year in order to determine the profit on the transfer, was upheld. The value of the shares received was to be determined on the basis of the amount of money for which the shares could have been sold, which was not necessarily the same as the par value of the shares received.