Dukehart-Hughes Tractor & Equipment Co., Inc., a Corporation v. The United States

This is a suit for refund of corporate income taxes, plus interest, arising out of the disallowance by the Commissioner of Internal Revenue of certain deductions for business expenses on plaintiff’s 1953, 1954, 1955 and 1956 corporate income tax returns.

The issue in this action is whether those disallowed items, which represent the expenses incident to the entertainment of, and gifts to, public officials, are deductible as ordinary and necessary business expenses under 26 U.S.C. (I.R. C.1939) § 23(a) (1) (A) (1952 Ed.) 1 and 26 U.S.C. (I.R.C.1954) § 162 (1958 Ed.) 2, because those…