Longhorn Portland Cement Co. v. Commissioner
United States Tax Court
Petitioners were sued by the State of Texas for alleged violations of the antitrust statutes of that state. Although convinced they had a valid defense, petitioners, for business reasons, consented to the entry of judgment against them in compromise and settlement of the action. The judgment specifically stated that the entry thereof should not constitute or be construed as an admission in any degree of the truth or correctness of the alleged violations in whole or in part.
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Petitioners were sued by the State of Texas for alleged violations of the antitrust statutes of that state. Although convinced they had a valid defense, petitioners, for business reasons, consented to the entry of judgment against them in compromise and settlement of the action. The judgment specifically stated that the entry thereof should not constitute or be construed as an admission in any degree of the truth or correctness of the alleged violations in whole or in part. Under the judgment each of the petitioners paid $ 50,000 to the state and paid attorney fees and legal expenses incident…
1Opinion of the Court
OPINION.
ARnold, Judge:
The question here is whether certain payments in compromise of a suit brought by the State of Texas against these petitioners for alleged violations of its antitrust laws, and attorney fees paid in connection therewith, constitute ordinary and necessary expenses of their business under section 23 (a) (1) (A) of the Internal Revenue Code, as amended by section 121 of the Revenue Act of 1942.1 Consideration'of these proceedings was postponed pending decision by the Supreme Court in Commissioner v. Heininger, 320 U. S. 467, certiorari having been granted therein because of…
2Cases cited5 opinions
- Welch v. HelveringSupreme Court of the United States · 1933
- Deputy, Administratrix v. Du PontSupreme Court of the United States · 1940
- Commissioner v. HeiningerSupreme Court of the United States · 1943
- Kornhauser v. United StatesSupreme Court of the United States · 1928
- Megargel v. CommissionerUnited States Tax Court · 1944
3Cited by23 opinions
- Commissioner v. TellierSupreme Court of the United States · 1966
- Greene Motor Co. v. CommissionerUnited States Tax Court · 1945
- Great Island Holding Corp. v. CommissionerUnited States Tax Court · 1945
- Commissioner of Int. Rev. v. Longhorn Portland Cem. Co.Court of Appeals for the Fifth Circuit · 1945
- Davis v. CommissionerUnited States Tax Court · 1951
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