United Gas Improv. Co. v. Commissioner
United States Tax Court
1. Debentures, together with interest accrued but unpaid, were exchanged in 1947, pursuant to a reorganization, for new securities in an amount less than the cost of the old debentures.
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1. Debentures, together with interest accrued but unpaid, were exchanged in 1947, pursuant to a reorganization, for new securities in an amount less than the cost of the old debentures. Held: Interest accrued but unpaid is an integral part of a debenture and such debenture, together with the interest accrued, constitutes a "security" within the meaning of section 112 (b) (3) of the Internal Revenue Code of 1939. No gain, therefore, is recognized in the exchange of old debentures, plus interest accrued on same, for new securities in a section 112 (g) reorganization. 2. Parent corporation…
1Opinion of the Court
opinion.
Mulroney, Judge:
The respondent determined deficiencies in income tax of petitioner for the taxable year 1947 in the sum of $711.20, and 1948 in the sum of $242,058.95. The petitioner seeks a determination that there is no deficiency but overpayments instead.
Petitioner, a Pennsylvania corporation, holding company, with its principal place of business in Philadelphia, Pennsylvania, filed its consolidated Federal income tax returns for the years 1947 and 1948 with the then collector of internal revenue for the first district of Pennsylvania at Philadelphia.
The facts were all stipulated…
2Cases cited4 opinions
- Atlantic Coast Line R. Co. v. Commissioner of Int. Rev.Court of Appeals for the Fourth Circuit · 1936
- Newark Milk & Cream Co. v. Com'r of Internal RevenueCourt of Appeals for the Third Circuit · 1929
- Commissioner of Internal Revenue v. Carman. Carman v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1951
- Bernstein v. CommissionerUnited States Tax Court · 1954
3Cited by5 opinions
- The United Gas Improvement Company v. Commissioner of Internal RevenueCourt of Appeals for the Third Circuit · 1956
- Bessemer Limestone & Cement Co. v. CommissionerUnited States Tax Court · 1956
- Flint & Fulton, Inc. v. CommissionerUnited States Tax Court · 1956
- The United Gas Improvement Company v. Commissioner of Internal RevenueCourt of Appeals for the Third Circuit · 1956
- United Gas Improv. Co. v. CommissionerUnited States Tax Court · 1955