General Smelting Co. v. Commissioner
United States Tax Court
1. Petitioner's president and directing head, who had served in that capacity for a good many years, in 1937 retired as president and was elected chairman of petitioner's board of directors. He was 72 years of age and in good health. He continued to serve petitioner, but in a somewhat reduced capacity. He continued to determine the buying and selling policies of petitioner, which were its most important requirements.
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1. Petitioner's president and directing head, who had served in that capacity for a good many years, in 1937 retired as president and was elected chairman of petitioner's board of directors. He was 72 years of age and in good health. He continued to serve petitioner, but in a somewhat reduced capacity. He continued to determine the buying and selling policies of petitioner, which were its most important requirements. Held, the sums which were paid this former president in the taxable years 1938, 1939, and 1940, under agreement between him and petitioner's board of directors, as pension for…
1Opinion of the Court
OPINION.
Black, Jvdge:
Issue 1. — In each of the taxable years petitioner paid T. Lewis Thomas, chairman of its board of directors, $14,400. These payments were entered on the books of petitioner as administrative expenses and were deducted by petitioner on its’income tax returns under “Salaries and Wages (not deducted elsewhere).” The Commissioner disallowed these deductions in their entirety and still insists on the correctness of the disallowance. The petitioner contends that the amounts in question were paid to Thomas for a twofold purpose, namely, as a pension for the long and valuable…
2Cases cited2 opinions
- Lucas v. Ox Fibre Brush Co.Supreme Court of the United States · 1930
- Helvering v. Chicago Stock Yards Co.Supreme Court of the United States · 1943
3Cited by40 opinions
- Pelton Steel Casting Co. v. CommissionerUnited States Tax Court · 1957
- J. L. Goodman Furniture Co. v. CommissionerUnited States Tax Court · 1948
- Gus Blass Co. v. CommissionerUnited States Tax Court · 1947
- R. J. Nicoll Co. v. CommissionerUnited States Tax Court · 1972
- World Pub. Co. v. United StatesCourt of Appeals for the Tenth Circuit · 1948
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