Northeastern Consolidated Company v. United States

CASTLE, Chief Judge.

This is an appeal from the district court’s judgment for the defendant, the United States, rendered in the plaintiff-taxpayer’s suit for refund of income taxes, plus interest, for the fiscal years ended March 31, 1954 and March 31, 1955 in the respective amounts of $10.75 and $56,784.95. The controversy stems from the Commissioner’s disallowance of taxpayer’s deductions for the alleged bad debts of an allegedly related corporation upon the merger of the taxpayer with that corporation.

A brief look at the transactions leading up to this suit, as adduced in the district…