Mathey v. Commissioner of Internal Revenue

WOODBURY, Circuit Judge.

The basic question presented by this petition for review of a decision of the Tax Court of the United States is whether the entire net amount awarded to the taxpayer in a suit for patent infringement constituted^ taxable income to him in the year of realization, as the Commissioner contends, or a non-taxable return of capital, as the taxpayer contends.

Following the decision of United States v. Safety Car Heating & Lighting Co., 297 U.S. 88, 56 S.Ct. 353, 80 L.Ed. 500, the general rule adopted by -several Courts of Appeals, including this one, apparently without a…