General Plastics, Inc. v. Commissioner
United States Tax Court
Taxpayer, being indebted to a bank in the sum of $400,000, repaid this amount by delivering its check to the bank, but on the same day it borrowed $500,000 from the same bank. Held, the transaction was in effect a renewal and increase of the debt rather than a payment of indebtedness within the meaning of section 27(a)(4) of the Internal Revenue Code.
1Opinion of the Court
General Plastics, Inc., Durez Plastics & Chemicals, Inc., Successor v. Commissioner.
General Plastics, Inc. v. Commissioner
Docket No. 111209.
United States Tax Court
1943 Tax Ct. Memo LEXIS 122; 2 T.C.M. (CCH) 767; T.C.M. (RIA) 43417;
September 9, 1943
Taxpayer, being indebted to a bank in the sum of $400,000, repaid this amount by delivering its check to the bank, but on the same day it borrowed $500,000 from the same bank. Held, the transaction was in effect a renewal and increase of the debt rather than a payment of indebtedness within the meaning of section 27(a)(4) of the Internal Revenue…
2Cases cited2 opinions
- City of Poughkeepsie v. . QuintardNew York Court of Appeals · 1892
- Sun Pipe Line Co. v. CommissionerUnited States Board of Tax Appeals · 1940