Lang v. Commissioner
United States Board of Tax Appeals
1. Nonresident alien owners of real estate in the United States consented to its sale in reliance upon the fraudulent representations of their agent. Years later, upon discovery of the fraud, they instituted an action for damages. The trial court awarded damages in an amount equal to the value of the land when sold, plus interest on that amount to the date of the judgment.
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1. Nonresident alien owners of real estate in the United States consented to its sale in reliance upon the fraudulent representations of their agent. Years later, upon discovery of the fraud, they instituted an action for damages. The trial court awarded damages in an amount equal to the value of the land when sold, plus interest on that amount to the date of the judgment. Held, that the total amount constituted damages and the Commissioner erred in including part of it in their gross income, as interest from sources within the United States, under section 211(a) of the Internal Revenue Code.…
1Opinion of the Court
*257OPINION.
Mellott:
These proceedings, duly consolidated for hearing, involve deficiencies in income tax for the fiscal year beginning February 1, 1939, and ending January 31, 1940, in the aggregate amount of $70,839.61. After they were instituted and on May 22, 1940, petitioners paid the full amount of the various deficiencies to the collector of internal revenue and thereafter filed supplements to their petitions asking that it be determined that overpayments had been made.
The proceedings were submitted on a written stipulation of facts and documentary evidence. All of the facts are found to be…
2Cases cited13 opinions
- Morgan v. CommissionerSupreme Court of the United States · 1940
- Old Colony Railroad v. CommissionerSupreme Court of the United States · 1932
- Seaboard Air Line Railway Co. v. United StatesSupreme Court of the United States · 1923
- Helvering v. Stockholms Enskilda BankSupreme Court of the United States · 1934
- Brooks-Scanlon Corp. v. United StatesSupreme Court of the United States · 1924
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3Cited by2 opinions
- Commissioner of Internal Revenue v. RaphaelCourt of Appeals for the Ninth Circuit · 1943
- Lang v. CommissionerUnited States Board of Tax Appeals · 1941