Southwell Combing Co. v. Commissioner
United States Tax Court
On May 9, 1947, Group S which owned 7 per cent of the stock of petitioner's predecessor purchased the remaining 93 per cent from its majority stockholders.
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On May 9, 1947, Group S which owned 7 per cent of the stock of petitioner's predecessor purchased the remaining 93 per cent from its majority stockholders. To finance that purchase, Group S borrowed $ 2,158,971.75 from Corporation N. That purchase was the first step in a plan between Group S, who wished to acquire control of the business but lacked the necessary funds, and Group W, who were solely interested in acquiring the predecessor's assets for the benefit of Corporation N in which they were the sole stockholders. Through purchases made on June 25 and 30, Corporation N acquired a 75 per…
1Opinion of the Court
ARUNdell, Judge:
These consolidated proceedings involve deficiencies in income tax in the following amounts:
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The only issue is whether, as determined by respondent, the liquidation of petitioner’s predecessor and the transfer of its assets to petitioner constituted a reorganization within the meaning of section 112 (g) (1) (D) of the 1939 Code, therefore requiring petitioner to use for depreciation purposes the same basis that those assets had in the hands of its predecessor.
Petitioner has conceded other issues raised by the pleadings.
This case was originally submitted on a fully…
2Cases cited14 opinions
- LeTulle v. ScofieldSupreme Court of the United States · 1940
- Kimbell-Diamond Milling Co. v. Comm'rUnited States Tax Court · 1950
- Kimbell-Diamond Milling Co. v. Commissioner of Internal RevenueCourt of Appeals for the Fifth Circuit · 1951
- Cortland Specialty Co. v. Commissioner of Internal Rev.Court of Appeals for the Second Circuit · 1932
- American Bantam Car Co. v. CommissionerUnited States Tax Court · 1948
9 more not listed; retrieve them via the Exa API.
3Cited by20 opinions
- James Armour, Inc. v. CommissionerUnited States Tax Court · 1964
- Gallagher v. CommissionerUnited States Tax Court · 1962
- The South Bay Corporation v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1965
- Moffatt v. CommissionerUnited States Tax Court · 1964
- Yoc Heating Corp. v. CommissionerUnited States Tax Court · 1973
15 more not listed; retrieve them via the Exa API.