Luckenbach Steamship Co. v. Commissioner

OPINION.

Van Fossan, Judge:

It is agreed that the gain of $412,459.39 realized upon receipt of $428,750 in 1942 from private insurers upon the loss of the Edward is includible in 1942 income. The question to be determined is whether the gain realized upon the amounts received from WSA is includible in 1942 income, as contended by respondent.. The respondent argues that WSA never denied liability under the charters; that there was no contest between petitioner and WSA and that the latter was merely withholding payment during a clarification period; that subsequent payments by WSA to petitioner…