Oahu Sugar Company, Limited v. The United States

JONES, Chief Judge.

In this action, plaintiff, Oahu Sugar Company, Limited, sues for refund of additional income taxes in the amount of $341,968.75, with interest, assessed and paid for the years 1950, 1951 and 1952.

Since 1897, plaintiff has operated a sugar plantation, including a raw sugar mill, on the Island of Oahu in Hawaii.

The controversy is whether gains from plaintiff’s sales of certain unimproved land and land with houses thereon should be taxed as capital gains or as ordinary income. 1 Plaintiff asserts the former; the defendant, of course, asserts the latter.

Condemnation by the…