Capitol Indem. Ins. Co. v. Commissioner
United States Tax Court
In part consideration for the cancellation of an exclusive agency agreement, petitioner assumed the liability of its agent to repay to the stockholders of petitioner the amount of the issued price of their stock. Held, no part of the payments by petitioner pursuant to the obligation thus assumed by it can qualify as an ordinary and necessary business expense within section 23 (a) (1) of the Internal Revenue Code of 1939.
1Opinion of the Court
Capitol Indemnity Insurance Company, Petitioner, v. Commissioner of Internal Revenue, Respondent
Capitol Indem. Ins. Co. v. Commissioner
Docket No. 50803
United States Tax Court
25 T.C. 147; 1955 U.S. Tax Ct. LEXIS 61;
October 28, 1955, Filed
Decision will be entered for the respondent.
In part consideration for the cancellation of an exclusive agency agreement, petitioner assumed the liability of its agent to repay to the stockholders of petitioner the amount of the issued price of their stock. Held, no part of the payments by petitioner pursuant to the obligation thus assumed by it can qualify as…
Also in this document: Dissent.
2Cases cited10 opinions
- New Colonial Ice Co. v. HelveringSupreme Court of the United States · 1934
- Commissioner v. HeiningerSupreme Court of the United States · 1943
- Interstate Transit Lines v. CommissionerSupreme Court of the United States · 1943
- Nelson v. CommissionerUnited States Tax Court · 1952
- Alexander Sprunt & Son v. Commissioner of Int. Rev.Court of Appeals for the Fourth Circuit · 1933
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