People ex rel. New York Trust Co. v. Graves

This proceeding was, instituted by relator to review a final determination of the State Tax Commission affirming an assessment of additional tax of $40,117.02 against it for the year 1929 under article 9-B of the Tax Law.

In its return for that year relator claimed a deduction in the amount of $67,489.44 for extraordinary repairs and a further deduction in the sum of $824,000 alleged to be a “reasonable allowance for salaries or other compensation for personal services actually rendered” arising out of the issuance and sale of stock to officers and employees of the corporation. These…