It is true that the acceptance and receipt of stock by stockholder-employees in lieu of salary or wages may not constitute taxable income to the employee if such stock distribution does not disturb the fractional interests of the stockholders of the corporation. Eisner v. Macomber, 252 U.S. 189, 40 S.Ct. 189, 64 L.Ed. 521 (1920); National Clothing Co. of Rochester, 23 T.C. 944 (1955); Daggitt 23 T.C. 31 (1954). But the evidence tended to show, in fact quite clearly established, that stock deliveries claimed as salary deductions, were made to employees as a mere subterfuge and without their actually having served as officers of the respective corporations.

Rather than spinning new theories to endlessly litigate the same issue, respondent would be better advised to seek symmetry in another forum. The result sought by respondent is clearly contrary to the result reached in Deloss E. Daggitt, 23 T.C. 31 (1954), albeit based on a new theory. But even aside from the endless litigation, there is danger in continually spinning new theories to relitigate the same old issues.

Rather than spinning new theories to endlessly litigate the same issue, respondent would be better advised to seek symmetry in another forum. The result sought by respondent is clearly contrary to the result reached in Deloss E. Daggitt, 23 T.C. 31 (1954), albeit based on a new theory. But even aside from the endless litigation, there is danger in continually spinning new theories to relitigate the same old issues.

Here, if it is of importance, a liability of J-S owing to the petitioner was invested in later years by the petitioner in additional stock of its wholly owned subsidiary with a consequent decrease in the liabilities of the subsidiary and an equal increase in the assets of the subsidiary. A corporate resolution to pay salaries but to pay them in stock was held to be a stock dividend in Deloss E. Daggitt, 23 T.C. 31. This is not such a case.