Pennsylvania Water & Power Co. v. Commissioner
United States Board of Tax Appeals
1. Petitioner acquired all the assets of its wholly owned subsidiary in consideration of the delivery to it of all the subsidiary's capital stock and the assumption by it of all of the subsidiary's indebtedness. This was done under a Pennsylvania statute sometimes referred to as permitting a "short form of merger."
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1. Petitioner acquired all the assets of its wholly owned subsidiary in consideration of the delivery to it of all the subsidiary's capital stock and the assumption by it of all of the subsidiary's indebtedness. This was done under a Pennsylvania statute sometimes referred to as permitting a "short form of merger." Statute examined and held acquisition by petitioner of the assets of its subsidiary under the statute was a purchase and not a merger. 2. Petitioner retired bonds issued by its former subsidiary and deducted from its gross income, (a) the unamortized discount and expense incurred…
1Opinion of the Court
*468OPINION.
Mellott :
The Commissioner disallowed several hundred thousand dollars, claimed by petitioner as deductions from its gross income in its return for the year 1928, and determined a deficiency in income tax against it for said year in the amount of $86,508.25. He concedes that he erred in disallowing $399,900.10 but contends that a deficiency of $39,675.82 exists by reason of the fact that $337,659.52 of the amount deducted by petitioner was improperly deducted and should be included in its taxable income. All of the facts were stipulated. We set out herein the portion of the stipulation…
2Cases cited9 opinions
- Buist's EstateSupreme Court of Pennsylvania · 1929
- Koehler v. St. Mary's Brewing Co.Supreme Court of Pennsylvania · 1910
- Daily's EstateSupreme Court of Pennsylvania · 1936
- Merwine v. Mt. Pocono Light & Improvement Co.Supreme Court of Pennsylvania · 1931
- York Haven W. & P. Co. v. Public Service CommissionSupreme Court of Pennsylvania · 1926
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3Cited by1 opinion
- Pennsylvania Water & Power Co. v. CommissionerUnited States Board of Tax Appeals · 1937