Iowa Southern Utilities Company, a Corporation v. Commissioner of Internal Revenue

BLACKMUN, Circuit Judge.

The Tax Court has decided that there is a deficiency of $74,330.15 in Iowa Southern Utilities Company’s 1955 fed eral income tax. Judge Mulroney’s opinion, not reviewed by the full court, is T.C.Memo. 1962-267. The taxpayer has petitioned for review.

The sole issue before us is whether certain attorneys’ fees and expenses incurred in a successful shareholders’ derivative suit and directed to be charged to the taxpayer are deductible as “ordinary and necessary expenses paid or incurred during the taxable year in carrying on any trade or business” under § 162 (a) of the…