Henry Watterson Hotel Co. v. Commissioner
United States Tax Court
Upon an audit of petitioner's books by O. P. A. investigators, petitioner was found to have made overcharges for its hotel rooms. Several months after the Price Administrator had instituted an action against petitioner for an injunction and for the overcharges, but prior to the hearing thereon, petitioner paid the amount to the United States.
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Upon an audit of petitioner's books by O. P. A. investigators, petitioner was found to have made overcharges for its hotel rooms. Several months after the Price Administrator had instituted an action against petitioner for an injunction and for the overcharges, but prior to the hearing thereon, petitioner paid the amount to the United States. Held, where there was no showing that the overcharges had been innocently made, petitioner could not deduct the amount so paid as an ordinary and necessary business expense.
1Opinion of the Court
OPINION.
Rice, Judge:
Respondent determined a deficiency of $8,600.33 in petitioner’s excess profits tax for the calendar year 1945. The sole issue is whether a payment to the United States on March 2, 1945, for O. P. A. violations is an ordinary and necessary business expense entitled to deduction under section 23 (a) (1) (A) of the Internal Revenue Code. All of the facts have been stipulated, are so found, and are incorporated herein.
Petitioner filed its corporation income and excess profits tax return for 1945'with the collector of internal revenue at Louisville, Kentucky.
Petitioner is a…
2Cases cited1 opinion
- Commissioner v. HeiningerSupreme Court of the United States · 1943
3Cited by29 opinions
- Boyle, Flagg & Seaman, Inc. v. CommissionerUnited States Tax Court · 1955
- Smith v. CommissionerUnited States Tax Court · 1960
- Wm. T. Stover Co. v. CommissionerUnited States Tax Court · 1956
- National Brass Works, Inc. v. CommissionerUnited States Tax Court · 1951
- Lentin v. CommissionerUnited States Tax Court · 1954
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