Dunn & McCarthy, Inc. v. Commissioner

SWAN, Circuit Judge.

The sole question for decision is whether a certain sum paid out by the taxpayer during the year 1939 was an allowable deduction from gross income as an ordinary and necessary expense of carrying on its trade or business within the meaning of § 23(a) of the Internal Revenue Code as amended by § 121 of the Revenue Act of 1942, 56 Stat. 819, 26 U.S.C.A. Int.Rev. Code, § 23(a). The taxpayer is a New York corporation engaged in the manufacture and sale to retail stores of women’s shoes. For two and one-half years before his death Buford H. Jones had been president of the…