Citizens Water Co. v. Commissioner
United States Board of Tax Appeals
Net income of a private corporation, operating water works under contract with a city, is not exempt from tax under section 116(d) of the Revenue Act of 1928 by reason of municipal ownership of part of corporation's stock and bonds, even though the city has a right under the contract to acquire ownership of the water works by purchasing the outstanding capital stock at par.
1Opinion of the Court
CITIZENS' WATER COMPANY, PETITIONER, v. COMMISSIONER OF INTERNAL REVENUE, RESPONDENT.
Citizens Water Co. v. Commissioner
Docket Nos. 71710, 74076.
United States Board of Tax Appeals
32 B.T.A. 750; 1935 BTA LEXIS 899;
June 11, 1935, Promulgated
Net income of a private corporation, operating water works under contract with a city, is not exempt from tax under section 116(d) of the Revenue Act of 1928 by reason of municipal ownership of part of corporation's stock and bonds, even though the city has a right under the contract to acquire ownership of the water works by purchasing the outstanding…
2Cases cited1 opinion
- Citizens Water Co. v. CommissionerUnited States Board of Tax Appeals · 1935