Frankford-Quaker Grocery Co. v. United States

OPINION AND ORDER

GORBEY, District Judge.

This action, to recover taxes paid by the plaintiff after the defendant disallowed deduction of certain payments, as being improperly taken under § 162(a) of the Internal Revenue Code of 1954, was tried without a jury. The payments in question were made by the plaintiff corporation while its competitors were in the process of liquidation and it was absorbing the business operations of these competitors.

I

The factual background against which these payments were made is as follows:

Prior to 1962, three economic cooperatives of retail grocers operated in the *96…