B. T. Harris Corp. v. Commissioner
United States Tax Court
Ordinary and Necessary Expenses -- Legal Fees Paid by Corporation in Suit by Stockholders. -- Amounts paid by the petitioner corporation, representing legal fees of all parties to a stockholders' suit against petitioner corporation and its directors brought to rescind acts of the directors with respect to salary allowances and issuance of stock, in which suit settlement was effected with approval of the trial court, held to be ordinary and necessary business expenses of the…
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Ordinary and Necessary Expenses -- Legal Fees Paid by Corporation in Suit by Stockholders. -- Amounts paid by the petitioner corporation, representing legal fees of all parties to a stockholders' suit against petitioner corporation and its directors brought to rescind acts of the directors with respect to salary allowances and issuance of stock, in which suit settlement was effected with approval of the trial court, held to be ordinary and necessary business expenses of the petitioner.
1Opinion of the Court
Atkins, Judge:
The respondent determined a deficiency in the petitioner’s income tax for the calendar year 1950 in the amount of $4,628.29. By amended answer the respondent claims a further deficiency of $7,850. The question for decision is whether certain legal fees paid by the petitioner in connection with a suit by stockholders are deductible as ordinary and necessary business expenses.
FINDINGS OF FACT.
Some of the facts are stipulated and are incorporated herein by this reference.
The petitioner is a corporation organized under the laws of the State of Delaware, on April 1, 1921, with its…
2Cases cited8 opinions
- Commissioner v. HeiningerSupreme Court of the United States · 1943
- Kornhauser v. United StatesSupreme Court of the United States · 1928
- Bishop v. CommissionerUnited States Tax Court · 1956
- Shoe Corp. of America v. CommissionerUnited States Tax Court · 1957
- Marron v. WoodNew Mexico Supreme Court · 1951
3 more not listed; retrieve them via the Exa API.
3Cited by11 opinions
- Larchfield Corporation v. United StatesCourt of Appeals for the Second Circuit · 1966
- Moore Trust v. CommissionerUnited States Tax Court · 1968
- Central Foundry Co. v. CommissionerUnited States Tax Court · 1967
- Erdman v. CommissionerUnited States Tax Court · 1962
- B. T. Harris Corp. v. CommissionerUnited States Tax Court · 1958
6 more not listed; retrieve them via the Exa API.