J. B. N. Telephone Company, Inc. v. United States

HOLLOWAY, Circuit Judge.

Plaintiff-appellee J.B.N. Telephone Co., Inc. (J.B.N.) claimed a deduction on its 1972 federal income tax return for a loss resulting from the abandonment of obsolete telephone equipment. The Internal Revenue Service disallowed the deduction and issued a notice of deficiency on the ground that J.B.N. simultaneously acquired and abandoned the equipment and therefore had no basis in it. J.B.N. paid the deficiency, filed a refund claim, which the I.R.S. denied, and then commenced this refund suit. Pursu ant to a jury verdict, 1 the district court entered a judgment for…