City Gas Co. v. Commissioner
United States Tax Court
Petitioners, a regulated public utility and two nonregulated companies all engaged in the business of selling gas to both residential and commercial customers, required new customers to deposit sums which were to be refunded upon customer termination of service or upon petitioners' prior election. These sums were generally credited against a customer's final bill and any balance refunded.
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Petitioners, a regulated public utility and two nonregulated companies all engaged in the business of selling gas to both residential and commercial customers, required new customers to deposit sums which were to be refunded upon customer termination of service or upon petitioners' prior election. These sums were generally credited against a customer's final bill and any balance refunded. Held, in the circumstances of this case, sums received by petitioners were security deposits subject to refund rather than income within the meaning of sec. 61, I.R.C. 1954.
1Opinion of the Court
Featherston, Judge:
In these consolidated cases, respondent determined deficiencies in the following amounts:
FYE Mar. 31— City Gas Dri-Gas Dade Gas
19631 $111,458.64 0 0
19641 6,025.98 $15,843.51 0
1966 100,693.39 919.46 $79,096.24
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Due to concessions by petitioners, the only issue for decision is whether amounts received from customers opening new accounts are includable in petitioners’ gross income for the year of receipt.2
FINDINGS OF FACT
Petitioners City Gas Co. of Florida (City Gas), Dade Gas Co. (Dade Gas), and Dri-Gas Corp. (Dri-Gas) are Florida corporations with principal…
2Cases cited15 opinions
- Automobile Club of Mich. v. CommissionerSupreme Court of the United States · 1957
- American Automobile Assn. v. United StatesSupreme Court of the United States · 1961
- Schulde v. CommissionerSupreme Court of the United States · 1963
- BJR Corp. v. CommissionerUnited States Tax Court · 1976
- Gilken Corporation v. Commissioner of Internal Rev.Court of Appeals for the Sixth Circuit · 1949
10 more not listed; retrieve them via the Exa API.
3Cited by14 opinions
- Commissioner v. Indianapolis Power & Light Co.Supreme Court of the United States · 1990
- City Gas Company of Florida v. Commissioner of Internal RevenueCourt of Appeals for the Eleventh Circuit · 1982
- Oak Industries, Inc. v. CommissionerUnited States Tax Court · 1991
- Continental Illinois Corp. v. CommissionerUnited States Tax Court · 1989
- Indianapolis Power & Light Co. v. CommissionerUnited States Tax Court · 1987
9 more not listed; retrieve them via the Exa API.