Shoe Corp. of America v. Commissioner
United States Tax Court
A shareholder of petitioner was plaintiff in a stockholder's derivative suit in which petitioner and some of its officers and directors were joined as defendants. The derivative suit was primarily brought to enjoin petitioner's officers and directors from issuing certain class B stock to petitioner's management which would have resulted in the perpetuation of control of the petitioner in the same family.
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A shareholder of petitioner was plaintiff in a stockholder's derivative suit in which petitioner and some of its officers and directors were joined as defendants. The derivative suit was primarily brought to enjoin petitioner's officers and directors from issuing certain class B stock to petitioner's management which would have resulted in the perpetuation of control of the petitioner in the same family. As a result of such suit the officers and directors were permanently enjoined from issuing the class B stock and the plaintiff's legal and accounting fees and expenses were taxed to…
1Opinion of the Court
Bruce, Judge:
The respondent determined the following deficiencies in the income tax of petitioner :
Year Deficiency
1951- $1,647. 30
1952- 118,778.73
The only issue remaining for decision involves respondent’s determination that certain litigation expenses incurred by petitioner in 1952 in a stockholder’s suit against petitioner and its officers and directors did not constitute an allowable deduction under the provisions of section 23 (a) of the Internal Revenue Code of 1939.
FINDINGS OF FACT.
The stipulated facts are incorporated herein by this reference.
The petitioner is an Ohio corporation with…
2Cases cited12 opinions
- Commissioner v. HeiningerSupreme Court of the United States · 1943
- Bowers v. LumpkinCourt of Appeals for the Fourth Circuit · 1944
- Garrett v. CrenshawCourt of Appeals for the Fourth Circuit · 1952
- Bishop v. CommissionerUnited States Tax Court · 1956
- European & North American Railway Co. v. PoorSupreme Judicial Court of Maine · 1871
7 more not listed; retrieve them via the Exa API.
3Cited by16 opinions
- Newark Morning Ledger Company, a Corporation of the State of New Jersey v. The United States of AmericaCourt of Appeals for the Third Circuit · 1976
- Jack Surasky v. United StatesCourt of Appeals for the Fifth Circuit · 1963
- Larchfield Corporation v. United StatesCourt of Appeals for the Second Circuit · 1966
- B. T. Harris Corp. v. CommissionerUnited States Tax Court · 1958
- Moore Trust v. CommissionerUnited States Tax Court · 1968
11 more not listed; retrieve them via the Exa API.