West Side Tennis Club v. Commissioner of Internal Revenue

AUGUSTUS N. HAND, Circuit Judge.

The principal question before us is whether the West Side Tennis Club was subject to income taxes for the years 1933 and 1934. The answer is determined by the effect to be given to Section 103(9) of the Revenue Act of 1932 and Section 101(9) of the Act of 1934, 26 U.S.C.A.Int.Rev. Code, § 101(9), which grant exemption from income taxes to: “Clubs organized and operated exclusively for pleasure, recreation, and other nonprofitable purposes, no part of the net earnings of which inures to the benefit of any private shareholder.”

The taxpayer was incorporated under…