Benedict Oil Co. v. United States

LOGAN, Circuit Judge.

This appeal is by the United States from a district court decision which held that certain costs incurred by Benedict Oil Company (Benedict or taxpayer) in a corporate liquidation under Section 337 of the Internal Revenue Code of 1954 (IRC) may be deducted as ordinary and necessary business expenses. The government contends that these costs must be offset against the gain from the sale of the assets and asks that we overrule our decision in United States v. Mountain States Mixed Feed Co., 365 F.2d 244 (10th Cir. 1966), which the lower court properly held controlled its…