Smith Hotel Enterprises, Inc. v. Nelson

GRUBB, District Judge.

This is an action for the refund of additional taxes paid when two deductions on plaintiff’s 1959 income tax return were disallowed by the defendant. There are cross-motions for summary judgment. The parties have stipulated to the facts, and the stipulation recites that it contains all the material facts in this case.

In 1957 the taxpayer received an offer to purchase substantially’ all of its assets. At a meeting on February 8, 1957, two of the three stockholders voted to accept the offer. One shareholder, who owned 25% of the stock in the company, dissented. This…