Arthur Hughes v. Commissioner of Internal Revenue

OAKES, Circuit Judge:

This uncomplicated appeal relates to the business entertainment expense deduction provisions of the Internal Reve nue Code and the pertinent Treasury Regulations. Appellant Hughes in 1963 and 1964 was a television stage manager in the New York studios of Columbia Broadcasting System. He frequently bought coffee, doughnuts and sandwiches for his crew’s consumption at nearby cafeterias and occasionally bought them drinks at local bars. These gratuities reflected an apparent custom in the trade, as they were offered ostensibly to sustain the morale and productivity of the…