Motor Mart Trust v. Commissioner
United States Tax Court
A trust, taxable as a corporation, being insolvent, was reorganized at the behest of its bondholders under section 77 B of the Bankruptcy Act, the former bondholders becoming its stockholders.
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A trust, taxable as a corporation, being insolvent, was reorganized at the behest of its bondholders under section 77 B of the Bankruptcy Act, the former bondholders becoming its stockholders. Assuming but not deciding that section 270 of chapter X of the Chandler Act may, by section 276 (c)-3 of the same act, be applicable, it is held, following Alcazar Hotel, Inc., 1 T. C. 872, and other extant decisions of the Tax Court and of the Board of Tax Appeals, that there had not been, in the reorganization proceeding a cancellation or reduction of the debtor's indebtedness within the purview of…
1Opinion of the Court
OPINION.
Melloit, Judge:
The history and purpose of the provisions of the Bankruptcy Act, authorizing what are commonly referred .to as 77 B reorganizations, and >the amendment of the law by chapter X of the Chandler Act in 1938, are too well known to require any extended discussion. The sections of the latter act, the applicability and effect of which are in issue here, are the ones recently — and since the filing of briefs herein — discussed by the Supreme Court in Claridge Apartments Co. v. Commissioner, 323 U. S. 141. In that case the Commissioner contended that the effect of section 276…
2Cases cited4 opinions
- United States v. Kirby Lumber CoSupreme Court of the United States · 1931
- Claridge Apartments Co. v. CommissionerSupreme Court of the United States · 1944
- Claridge Apartments Co. v. CommissionerUnited States Tax Court · 1942
- Alcazar Hotel v. CommissionerUnited States Tax Court · 1943
3Cited by6 opinions
- Los Angeles Shipbuilding & Drydock Corporation v. United States of America, United States of America v. Los Angeles Shipbuilding & Drydock CorporationCourt of Appeals for the Ninth Circuit · 1961
- Tower Building Corp. v. CommissionerUnited States Tax Court · 1946
- Tower Bldg. Corp. v. CommissionerUnited States Tax Court · 1946
- Motor Mart Trust v. CommissionerUnited States Tax Court · 1945
- Tower Bldg. Corp. v. CommissionerUnited States Tax Court · 1946
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