Continental Screen Co. v. Commissioner
United States Board of Tax Appeals
In 1924 the petitioner was served with a notice of complaint by the Federal Trade Commission, in which violation of the Sherman Act by the petitioner was alleged and a date set for hearing before the Commission. The petitioner employed eminent counsel to defend it against such charge. On October 14, 1925, the Commission entered an order dismissing the complaint.
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In 1924 the petitioner was served with a notice of complaint by the Federal Trade Commission, in which violation of the Sherman Act by the petitioner was alleged and a date set for hearing before the Commission. The petitioner employed eminent counsel to defend it against such charge. On October 14, 1925, the Commission entered an order dismissing the complaint. The petitioner paid bills as rendered by its attorneys for services in 1925 and 1926 in the amounts of $40,000 and $15,000, respectively. Held that the amounts paid as attorneys' fees were deductible from gross income as ordinary and…
1Opinion of the Court
*1096OPINION.
Smith:
The single question presented by this proceeding is whether attorneys’ fees paid by the petitioner in the calendar year 1925, and in the fiscal period January 1 to July 31,1926, for services performed by the attorneys in representing it before the Federal Trade Commission, are ordinary and necessary expenses deductible from gross *1097income within the meaning of section 234(a) (1) of the Revenue Act of 1926, which permits a corporation to deduct from gross income, among other items, “All the ordinary and necessary expenses paid or incurred during the taxable year in carrying on .any…
2Cases cited1 opinion
- Kornhauser v. United StatesSupreme Court of the United States · 1928
3Cited by6 opinions
- Memphis Memorial Park v. CommissionerUnited States Board of Tax Appeals · 1933
- Continental Screen Co. v. CommissionerUnited States Board of Tax Appeals · 1930
- General Outdoor Advertising Co. v. CommissionerUnited States Board of Tax Appeals · 1935
- Hales-Mullaly, Inc. v. CommissionerUnited States Board of Tax Appeals · 1942
- Hervey v. CommissionerUnited States Board of Tax Appeals · 1932
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