Buscaglia v. Tax Court of Puerto Rico

The Treasurer notified the taxpayer of a deficiency for its .1935 income tax resulting from the disallowance by the Treasurer of certain deductions made bjr the corporation in its return. The Tax Court sustained the action of the Treasurer, exeept that it upheld the contention of the taxpayer that it was entitled to deduct three payments made by the corporation in 1935 for services rendered in 1934; as follows: (1) $400 for attorney’s fees; (2) $500 for fees .of an engineer; (3) $4,500 for six months salary of the president of the corporation. We granted the petition of the Treasurer to…