Newman & Carey Subway Constr. Co. v. Commissioner
United States Board of Tax Appeals
1. A corporation recovering a judgment against the city of New York for damages, being indebted to another (B) for advances, causes, pursuant to an earlier agreement, the amount of the judgment to be cleared through a third person, thereby discharging its indebtedness to B. Held that the earlier agreement did not operate as an assignment of the damage award to B, and the amount thereof is taxable income of the corporation. 2. An amount recovered by a corporation in 1935 in…
Read the full summary
1. A corporation recovering a judgment against the city of New York for damages, being indebted to another (B) for advances, causes, pursuant to an earlier agreement, the amount of the judgment to be cleared through a third person, thereby discharging its indebtedness to B. Held that the earlier agreement did not operate as an assignment of the damage award to B, and the amount thereof is taxable income of the corporation. 2. An amount recovered by a corporation in 1935 in recoupment of a loss suffered on a construction contract, completed in 1921, and covered by a return for that year on the…
1Opinion of the Court
*1166OPINION.
SteRNhagen :
The Subway Construction Co. assails the Commissioner’s determination that the $986,864.95 of the judgment recovered from the city of New York in 1935 was within its gross income, (a) because it was not received by it but by the Roth estate by virtue of the 1924 contract, or (b) because in its nature as damages the principal was not income even though the interest may have been.(a) The judgment was recovered from the city and was paid in 1935. By an authorization given pursuant to the 1924 contract the judgment was collected by a law firm and disbursed by it directly as…
2Cases cited1 opinion
- Burnet v. Sanford & Brooks Co.Supreme Court of the United States · 1931
3Cited by8 opinions
- Mendelson v. Comm'rUnited States Tax Court · 1969
- Januschke v. CommissionerUnited States Tax Court · 1967
- Transo Oil Corp. v. CommissionerUnited States Tax Court · 1943
- Januschke v. CommissionerUnited States Tax Court · 1967
- Mendelson v. Comm'rUnited States Tax Court · 1969
3 more not listed; retrieve them via the Exa API.