House of Hasselbach, Inc. v. McLaughlin

The plaintiff rented a building in New Haven, but used only a part of it, subletting the rest. It claims that its “rent paid” under the Corporation Business Tax Act of 1935 (Cum. Sup. 1935, Chapter 66b) was its gross rent less the amounts received from its subtenants. The defendant claims that no deduction from the gross rent paid could be made under the statute. These differing interpretations form the issue on this appeal. As a practical matter of accounting, the increased taxes assessed result from the inclusion in income of the rental received from the subtenants, instead of using it to…