Alexander Sprunt & Son, Inc. v. Commissioner
United States Board of Tax Appeals
1. Payments made by the petitioner, under the guise of commissions, to a partnership composed of all of petitioner's common stock holders, the interest of each member of the partnership being fixed in direct proportion to his holdings of petitioner's common stock, held, to have been in the nature of distributions of profits and not proper deductions in computing net income. 2. Amounts accrued on petitioner's books as commissions due to a foreign corporation for services…
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1. Payments made by the petitioner, under the guise of commissions, to a partnership composed of all of petitioner's common stock holders, the interest of each member of the partnership being fixed in direct proportion to his holdings of petitioner's common stock, held, to have been in the nature of distributions of profits and not proper deductions in computing net income. 2. Amounts accrued on petitioner's books as commissions due to a foreign corporation for services actually rendered are ordinary and necessary expenses of carrying on the petitioner's business and constitute proper…
1Opinion of the Court
*611OPINION.
MaRquette :
1. The first issue has been somewhat beclouded by the different positions taken by the petitioner in the pleadings and in its brief. In the preliminary statement of this report, we have quoted verbatim under (1) the assignment of error as set forth in the petition. In the statement of facts contained in the petition, the petitioner alleged as follows:
These commissions were taken as a deduction from gross income in the 1923 tax return filed ky the petitioner. The respondent has in its 00-day letter disallowed these commissions as a deduction from gross income and has stated,…
2Cited by12 opinions
- Security First Nat'l Bank v. CommissionerUnited States Board of Tax Appeals · 1933
- Hudlow v. CommissionerUnited States Tax Court · 1971
- Evening Star Newspaper Co. v. CommissionerUnited States Board of Tax Appeals · 1933
- Maier Brewing Co. v. CommissionerUnited States Tax Court · 1987
- Addressograph-Multigraph Corp. v. Comm'rUnited States Tax Court · 1945
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