Celanese Corp. & Consolidated Subsidiaries v. United States

ORDER ON PLAINTIFF’S MOTION FOR AN ORDER SPECIFYING FACTS NOT IN CONTROVERSY

PHILIP R. MILLER, Judge.

The substantive question at issue is whether or not Celanese Corporation may deduct $58,364,636 as a bad debt loss, ordinary loss or business expense on its 1969 *46income tax return, as the result of having paid that sum in satisfaction of its guarantees of the debts of SIACE, an Italian subsidiary, during that year.

Defendant moved for summary judgment on the legal contention that § 166 of the Internal Revenue Code of 1954 was the only provision under which plaintiff could deduct its loss and,…