Best v. State, Department of Revenue

HOLMES, Judge.

This is an income tax case.

The Circuit Court of Montgomery County, after an ore tenus hearing, found that the taxpayer should have included as income in his 1976 state income tax return the gain from the sale of certain property. Additionally, the circuit court found that the statutory penalty assessed against the taxpayer by the State Department of Revenue was not justified.

The taxpayer appeals from the first finding and the state cross-appeals as to the penalty. We affirm.1

The record viewed with the attendant presumptions reveals the following facts.

In May of 1976, the…