Robert L. And Dorothy G. Maple v. Commissioner of Internal Revenue, William M. And Eleanor A. Smith v. Commissioner of Internal Revenue

HUFSTEDLER, Circuit Judge:

The Commissioner of Internal Revenue appeals from a decision of the Tax Court allowing taxpayers Robert Maple and William Smith1 to deduct as business expenses certain amounts incurred or expended in connection with the development of an orchard.

The taxpayers were limited partners in the Maple Corona Ranch Company (“Corona”), a partnership organized to develop and operate a citrus orchard. In June of 1961, Corona entered into an agreement with M&M Company (“M&M”), a nursery, whereby Corona purchased 26,000 seedlings at $.30 apiece from M&M and M&M agreed to maintain,…