Summerill Tubing Co. v. Commissioner
United States Board of Tax Appeals
During 1929, the president of the petitioner corporation, by means of fictitious corporate purchases, wrongfully took from the corporation and converted to his own use the sum of $76,939.63. Petitioner has never received anything for such purchases nor has it been compensated in any way, by note, promise, or otherwise, for such wrongful conversions.
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During 1929, the president of the petitioner corporation, by means of fictitious corporate purchases, wrongfully took from the corporation and converted to his own use the sum of $76,939.63. Petitioner has never received anything for such purchases nor has it been compensated in any way, by note, promise, or otherwise, for such wrongful conversions. The president of petitioner, duly authorized to do so, filed petitioner's income tax return for 1929, in which the fictitious purchases were reflected, thus decreasing petitioner's taxable income. More than two years thereafter, respondent…
1Opinion of the Court
*350OPINION.
Leech:
The controlling Revenue Act of 1928, section 275,1 obviously, bars the assessment of the present deficiency and, a fortiori, the contended fraud penalty (Samuel L. Huntington, 35 B. T. A. 835), unless, under section 276 2 of that act, the return for 1929 was “false or fraudulent with intent to evade tax.” This issue is separate from that involved in section 293 (b),3 under which the amount, only, of the fraud penalty is fixed, and must be answered before we reach the question of the existence of any deficiency. See Charles J. Delone, 34 B. T. A. 1139. Respondent has the burden…
2Cases cited3 opinions
- Doyle v. Mitchell Brothers Co.Supreme Court of the United States · 1918
- United States v. Ninety-Nine DiamondsCourt of Appeals for the Eighth Circuit · 1905
- National Bank of Commerce v. AllenCourt of Appeals for the Eighth Circuit · 1915
3Cited by16 opinions
- Federbush v. CommissionerUnited States Tax Court · 1960
- Estate of Leyman v. CommissionerUnited States Tax Court · 1963
- Ruidoso Racing Asso. v. CommissionerUnited States Tax Court · 1971
- United States v. Peelle CompanyDistrict Court, E.D. New York · 1956
- Elfmon v. United StatesCourt of Appeals for the Fourth Circuit · 1954
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