Garland Coal & Mining Co. v. Commissioner
United States Board of Tax Appeals
The petitioner, in the year 1928, purchased certain of its bonds at a price less than the amount at which such bonds had been previously issued. It did not cancel such bonds, but held them in its treasury throughout the year 1928. Held that the eifference between the issuing price and the price at which petitioner purchased the bonds in 1928 constitutes taxable income in that year.
1Opinion of the Court
OPINION.
McMahon:
This is a proceeding for the redetermination of a deficiency in income tax for the calendar year 1928 in the amount of $9,234.96.
It is alleged that the respondent erred (1) in increasing petitioner’s net income by the amount of $52,960.20 representing the difference between the issuance price, $100,000, of certain of its own bonds, and $47,039.80, the amount paid by the petitioner in 1928 for the acquisition of such bonds; (2) in disallowing as a deduction the amount of $16,120.80 representing the amount of repairs accrued on petitioner’s stripping shovel in 1928; and (3) in…
2Cases cited2 opinions
- United States v. Kirby Lumber CoSupreme Court of the United States · 1931
- Twin Ports Bridge Co. v. CommissionerUnited States Board of Tax Appeals · 1932
3Cited by7 opinions
- Montana, W. & S. R. Co. v. CommissionerUnited States Board of Tax Appeals · 1934
- Virginia Iron, Coal & Coke Co. v. CommissionerUnited States Board of Tax Appeals · 1934
- American Brake Shoe & Foundry Co. v. Interborough Rapid Transit Co.District Court, S.D. New York · 1936
- Garland Coal & Mining Co. v. CommissionerUnited States Board of Tax Appeals · 1933
- Tennessee Consol. Coal Co. v. CommissionerUnited States Tax Court · 1943
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