Document: 348 U.S. 434 75 S.Ct. 478 99 L.Ed. 504 GENERAL AMERICAN INVESTORS COMPANY, Inc., Petitioner,v.COMMISSIONER OF INTERNAL REVENUE. No. 114. Argued Feb. 28, 1955. Decided March Mr. Norris Darrell, New York City, for petitioner. Solicitor General Simon E. Sobeloff, Washington, D.C., respondent. Chief Justice WARREN delivered the opinion of Court. 1 The sole question presented by this case is whether a payment taxable as gross income when received corporation pursuant to 'insider profits' provisions Securities Exchange Act 19341 and Investment Company 1940.2 Subject exceptions not presently relevant, § 16(b) provides that profit realized from certain defined securities transactions undertaken director or major stockholder issuing 'shall inure be recoverable issuer.'3 This provision made applicable investment companies 30(f) 1940.4 Under these provisions, petitioner, registered closed-end company, payments totalling $170,308.04. sum represented profits accruing one petitioner's directors through dealings covered 16(b); money was paid over petitioner on demand without litigation. were reported tax returns. Commissioner Internal Revenue allowed $13,000 deduction legal expenses incurred in recovering amounts due but asserted deficiency balance ground receipts constituted gains under 22(a) Code 1939.5 Tax Court, 19 T.C. 581, Court Appeals Second Circuit, 211 F.2d 522, sustained Commissioner's determination. We granted certiorari, 812, 35, because an apparent similarity issues here those involved v. Glenshaw Glass Co., 3 Cir., 928, possible conflict between this.6 2 have day decided recovery punitive damages fraud antitrust violation reportable within meaning 22(a). 349 426, 473. reasons which dictated result are equally compelling here. see no significant difference nature might make ruling inapplicable. As Glenshaw, taxpayer free any restrictions use. controversy neither capital contributions nor gifts. Cf. Texas & Pacific R. Co. United States, 286 285, 52 528, 76 1108. There indication Congress intended exempt them coverage. In accordance with legislative design reach all gain constitutionally unless specifically excluded, we conclude liable judgment affirmed. Affirmed. 4 DOUGLAS concurs result. 5 HARLAN took part consideration decision case. 48 Stat. 881, 15 U.S.C. 78a et seq., U.S.C.A. seq. 54 789, 80a-1 896, 78p, 78p. 837, 80a-29, 80a-29. '§ 22. Gross Income '(a) definition. 'Gross income' includes gains, profits, derived salaries, wages, compensation personal service * whatever kind paid, professions, vocations, trades, businesses, commerce, sales, property, real personal, growing out ownership use interest such property; also interest, rent, dividends, securities, transaction business carried profit, source whatever. *' (Emphasis added.) 53 9, 574, 26 22(a), 6 was, however, disagreement among lower courts faced taxability profits.' See Park Tilford Distillers Corp. 107 F.Supp. 941, 123 Ct.Cl. 509; Noma Electric Corp., 12 T.C.M. (CCH Ct. Mem. Dec. 1953).

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