Comtel Corp. v. Commissioner
United States Tax Court
1. Held, that certain transactions between petitioner Comtel Corp. and Zeckendorf Hotels Corp., which in form purported to be, first a purchase by Comtel from Zeckendorf of most of the capital stock of Commodore Hotel, Inc., for a price of more than $ 8 million in cash, and then a sale back to Zeckendorf of this same stock about 7 months later at a profit of over $ 872,000 -- were, in substance and reality as distinguished from form, merely steps in a previously planned…
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1. Held, that certain transactions between petitioner Comtel Corp. and Zeckendorf Hotels Corp., which in form purported to be, first a purchase by Comtel from Zeckendorf of most of the capital stock of Commodore Hotel, Inc., for a price of more than $ 8 million in cash, and then a sale back to Zeckendorf of this same stock about 7 months later at a profit of over $ 872,000 -- were, in substance and reality as distinguished from form, merely steps in a previously planned financing arrangement for the benefit of the Zeckendorf Corp., under which: (1) The cash of more than $ 8 million was…
1Opinion of the Court
Pierce, Judge:
This proceeding involves 32 separate but related cases, which were consolidated for trial before this Court. In the first of these (Comtel Corp., docket No. 225-63), the respondent determined a deficiency of $215,621.33 in the income tax of petitioner Comtel, a dissolved corporation, for its fractional taxable year covering the period from February 1, 1958, to September 30, 1958. In each of the other 31 consolidated cases, the respondent determined that the particular petitioner is liable as a transferee of assets of said Comtel Corp., for all or part of the above-mentioned…
2Cases cited7 opinions
- Gregory v. HelveringSupreme Court of the United States · 1935
- Doyle v. Mitchell Brothers Co.Supreme Court of the United States · 1918
- Mooney v. . ByrneNew York Court of Appeals · 1900
- Hughes v. . HarlamNew York Court of Appeals · 1901
- Ogden v. OgdenNew York Supreme Court · 1903
2 more not listed; retrieve them via the Exa API.
3Cited by18 opinions
- Wood v. CommissionerUnited States Tax Court · 1989
- Penn-Dixie Steel Corp. v. CommissionerUnited States Tax Court · 1978
- Comtel Corporation v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1967
- Zilkha & Sons, Inc. v. CommissionerUnited States Tax Court · 1969
- Guggenheim v. CommissionerUnited States Tax Court · 1966
13 more not listed; retrieve them via the Exa API.