Allen, Collector of Internal Revenue v. Werner

RUSSELL, Circuit Judge.

The appeal in this case, coming after the winnowing process of the trial of a suit for refund of income taxes, presents the primary question of whether the trial Court erred in admitting and considering parol evidence in construing the purpose and effect of an agreement between a patentor and a manufacturer with reference to the manufacture and sale of hydraulic lifting jacks. The tax question at issue is whether the income received by the grantor was ordinary income, or income from the sale of a capital asset. As the case is presented here, and, as to this question, in…