Sager Glove Corp. v. Commissioner
United States Tax Court
Petitioner instituted suit under the Federal antitrust laws against certain optical companies, charging loss of profits and injury to its business and property during the years 1936 to 1943, inclusive.
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Petitioner instituted suit under the Federal antitrust laws against certain optical companies, charging loss of profits and injury to its business and property during the years 1936 to 1943, inclusive. The jury awarded damages of $ 325,000 and the court entered judgment of treble that amount together with costs and charges, and attorneys' fees of $ 132,000. Thereafter the court ordered a new trial, but the suit was settled by the parties out of court, the petitioner receiving in settlement an amount of $ 478,142, of which $ 132,000 was designated as attorneys' fees. Neither the release nor…
1Opinion of the Court
Atkins, Judge:
The respondent determined a deficiency in income tax in the amount of $167,735.33 for the taxable year 1951.
The issue is whether the full amount of $478,142 received by petitioner in 1951 in settlement of an antitrust suit is taxable as ordinary income as determined by respondent or whether $346,142 thereof constitutes nontaxable return of capital as contended by petitioner.
Adjustment will be made under Rule 50 in accordance with agreement between the parties as to other issues.
FINDINGS OF FACT.
Some of the facts are stipulated, and the stipulations, including the stipulated…
2Cases cited11 opinions
- Commissioner v. Glenshaw Glass Co.Supreme Court of the United States · 1955
- United States v. Safety Car Heating & Lighting Co.Supreme Court of the United States · 1936
- Raytheon Production Corp. v. Commissioner of Int. Rev.Court of Appeals for the First Circuit · 1944
- Durkee v. Commissioner of Internal RevenueCourt of Appeals for the Sixth Circuit · 1947
- H. Liebes & Co. v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1937
6 more not listed; retrieve them via the Exa API.
3Cited by33 opinions
- Fono v. CommissionerUnited States Tax Court · 1982
- Roemer v. CommissionerUnited States Tax Court · 1982
- Bresler v. CommissionerUnited States Tax Court · 1975
- Sager Glove Corporation v. Commissioner of Internal RevenueCourt of Appeals for the Seventh Circuit · 1962
- Wheeler v. CommissionerUnited States Tax Court · 1972
28 more not listed; retrieve them via the Exa API.