International Shoe MacHine Corp. v. United States

MEMORANDUM OF DECISION

GARRITY, District Judge.

This is a tax refund suit in which the plaintiff taxpayer asserts that the Commissioner of Internal Revenue erroneously treated income realized from the plaintiff’s sales of certain shoe machines as ordinary income instead of treating the income under the capital gains provisions of the Code. The court has jurisdiction under 28 U.S.C. §§ 1340, 1346(a)(1).

The plaintiff, a well-known manufacturer of shoe machinery, is a Massachusetts corporation with its principal place of business in Brighton, Massachusetts. During the years in question — 1964…