Teleservice Company of Wyoming Valley v. Commissioner of Internal Revenue

KALODNER, Circuit Judge.

Were “contributions” received by the taxpayer, a television signal transmission service, from its customers, “toward the total cost of constructing” its facilities, under a contract which simultaneously provided for such “contributions” and the further payment of a “monthly maintenance charge”, includable as “gross income” under Section 22(a) of the Internal Revenue Code of 1939 ? 1

That is the issue presented by this petition for review of the decision of the Tax Court 2 which answered it affirmatively, thereby making the “contributions” toward the cost of construction…