Chipley v. Commissioner
United States Board of Tax Appeals
1. Where the Commissioner gave an unsound reason for including an item in a petitioner's income and the pleadings were framed to test the reason only, the Board will nevertheless sustain the Commissioner if upon a full disclosure of the facts it is convinced that there was a good reason for including the item in income. 2. One who is president and the owner of all of the stock of a solvent corporation doing a profitable business must include in his income all of the salary…
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1. Where the Commissioner gave an unsound reason for including an item in a petitioner's income and the pleadings were framed to test the reason only, the Board will nevertheless sustain the Commissioner if upon a full disclosure of the facts it is convinced that there was a good reason for including the item in income. 2. One who is president and the owner of all of the stock of a solvent corporation doing a profitable business must include in his income all of the salary regularly credited to him on the books of the corporation during his taxable year, a part of which salary he withdrew and…
1Opinion of the Court
*1105OriNION.
MURDOCH:
The petitioner’s counsel contend that a very narrow issue has been drawn in connection with the $12,000 item representing salary from Chipley’s Universal Motor Company, Inc. They argue that the issue is as to whether or not the petitioner received this amount of salary in the form of capital stock; the proof shows that he received no capital stock during the year; and, therefore, he should have judgment, for the Board, under such circumstances, may not decide nor even consider whether or not the $12,000 representing salary might have been properly included in the petitioner’s…
2Cases cited5 opinions
- United States v. AndersonSupreme Court of the United States · 1926
- Corliss v. BowersSupreme Court of the United States · 1930
- Casey v. GalliSupreme Court of the United States · 1877
- Niles Bement Pond Co. v. United StatesSupreme Court of the United States · 1930
- United States v. American Can Co.Supreme Court of the United States · 1930
3Cited by36 opinions
- Bixby v. CommissionerUnited States Tax Court · 1972
- Wilkes-Barre Carriage Co. v. CommissionerUnited States Tax Court · 1963
- Cecil v. Commissioner of Internal RevenueCourt of Appeals for the Fourth Circuit · 1939
- Security First Nat'l Bank v. CommissionerUnited States Board of Tax Appeals · 1933
- Hughes v. CommissionerUnited States Tax Court · 1964
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