Dresser Industries, Inc. v. Lindley

Because I conclude that the Board of Tax Appeals decision in this case was unreasonable and unlawful, I respectfully dissent. Under the facts of the present case, it is my view that Dresser’s primary purpose in acquiring the property in question was to complete its research and development in order to fulfill its contractual obligations with the government and not to resell that property.

The majority opinion sets forth the appropriate test to be employed. The primary use or purpose test is applicable in all cases where the taxpayer’s purpose is unclear because dual uses exist. United States…