Jack M. Chesbro, Carl Silverstein, Morris Silverstein, Smiling Jack Chesbro, Inc. v. Commissioner of Internal Revenue

We adopt the opinion of the Tax Court. 21 T.C. 123. We add only a few words addressed to the appellants’ contention that the Pax Court erred in failing to apply the holding of this court announced in Cohan v. Commissioner, 39 F.2d 540. The principal similarity of that case to this lies in the fact that in neither did the taxpayer have books of account to support the allowance. of claimed deductions. But in Cohan, the Tax Court was reversed only because it found that the taxpayer had made some allowable expenditures, yet gave him credit for none. That holding is not applicable here. To the…