...Revenue Act of 1918 adopted the definition of gross Income applicable to individuals which excluded "the proceeds of life insurance policies paid upon...individual beneficiaries or to the estate of the insured." There was no purpose, In the exemption, to distinguish between individual beneficiaries and corporate...

..."(b) Does not include the following items, which shall be exempt from taxation under this title : "(1) The proceeds of life insurance policies paid upon...individual beneficiaries or to the estate of the insured; "(2) The amount received by the insured as a return of premium or premiums paid by him under life insurance,...

...value of) property acquired by gift, bequest, devise or descent; and including the income from (but not the proceeds of) life insurance policies paid upon the death of the person insured, or payments made or credited to the insured on life insurance endowment or annuity...

...(b) Does not include the following items, which shall be exempt from taxation under this title: (1) The proceeds of life insurance policies paid upon...individual beneficiaries or to the estate of the insured; 2 This provision apparently exempts the proceeds of all life insurance policies except those payable...

...policies.— EXTENT TO WHICH EXEMPT WHEN PAID TO BENEFICIARIES. 66 LAW. Section 213. (b) . . . . (i) The proceeds of life insurance policies paid upon the death of the insured;" 1 " .... "CB 2, page 08; OD 434. "This exemption, first introduced in igiS. resulted from court interpretations...

...beneficiaries were taxable (section 4). The 1913 law (section B) stated that net income should not include "the proceeds of life insurance policies paid upon the death of the person insured." REGULATION No taxable income is realized from the passage of property to the executor...

...items, under certain conditions, are among the exclusions from gross income: 1913 and thereafter— Proceeds of life insurance policies paid upon the death of the insured. Wholly tax-exempt interest. The value of property acquired by gift, bequest, devise, or descent. Amounts...

...from taxation hereunder, and by some law of the United States of America, and except also from income, the proceeds of life insurance policies paid upon the death of the insured and the amount received by the insured as a return of premium or premiums paid by him under life insurance...

...which, like (b) (6) supra, exempted certain items from taxation. The exemption was in this language: "The proceeds of life insurance policies paid upon...individual beneficiaries or to the estate of the insured." The Court said : We thiuk the Treasury Department erred in assuming that Congress Intended by sections...

...value of property acquired by gift, bequest, devise or descent, and including the income from but not the proceeds of life insurance policies paid upon the death of the person insured, or payments made or credited- to the insured, on life insurance, endowment or annuity...