George Hall Corp. v. Commissioner
United States Tax Court
Following Helvering v. American Dental Co., 318 U.S. 322, a voluntary cancellation of overdue interest on debentures held by a shareholder of the debtor is a gift and not taxable income to the debtor.
1DissentLeech, J.
The decision here, I think, should follow that in Helvering v. Jane Holding Corporation, 109 Fed. (2d) 933; certiorari denied, 310 U. S. 653. See Pondfield Realty Co., 1 T. C. 217 (on appeal, C. C. A., 2d Cir.). The holding of the Supreme Court in Cormnissioner v. American Dental Co., 318 U. S. 322, must be “read in the context of its facts.” Detroit Edison Co. v. Commissioner, 319 U. S. 98. When so read it certainly is not to be construed as reversing Helvering v. Jane Holding Corporation, supra. That, I think, is the fallacy of the majority opinion.
Offer, J., agrees with this dissent.
2Cases cited3 opinions
- Helvering v. American Dental Co.Supreme Court of the United States · 1943
- Detroit Edison Co. v. CommissionerSupreme Court of the United States · 1943
- Pondfield Realty Co. v. CommissionerUnited States Tax Court · 1942