Hooker Electrochemical Co. v. Commissioner

OPINION.

Kern, Judge:

The issue, as it relates to petitioner Hooker Electrochemical Co., is whether the amounts of bonus payments awarded by its board of directors on November 12,1942, were properly accruable as an ordinary and necessary expense of doing business during its fiscal year ended November 30,1942.

The facts are all set out in detail and we refrain from unnecessary repetition thereof.

The Internal Revenue Code, in section 43, provides that deductions:

* * * shall be taken for the taxable year in which “paid or accrued” or “paid or incurred”, dependent upon the method of accounting upon…