Midland-Ross Corporation v. United States

This cause is before the Court on appeal from a judgment of the United States District Court for the Northern District of Ohio granting judgment in favor of the appellee, a taxpayer, against the United States, the appellant. The sole question presented on the appeal is whether original discount income received upon the sale of notes prior to their maturity is entitled to be treated as capital gains under Section 117(f) of the Internal Revenue Code of 1939.

Judge Kalbfleiseh of the District Court wrote a comprehensive opinion in the case in which he followed the ruling of this Court in…