Corporation of America v. Commissioner
United States Tax Court
In its income tax return for the year 1930 petitioner deducted from gross income amounts paid for documentary stamp taxes. Its return then showed a large net income. Petitioner was a member of a group of affiliated corporations. A consolidated return was filed for the group showing a large net loss for 1930. Petitioner obtained a judgment that such taxes had been erroneously assessed and in 1939 the amount thereof was refunded to it.
Read the full summary
In its income tax return for the year 1930 petitioner deducted from gross income amounts paid for documentary stamp taxes. Its return then showed a large net income. Petitioner was a member of a group of affiliated corporations. A consolidated return was filed for the group showing a large net loss for 1930. Petitioner obtained a judgment that such taxes had been erroneously assessed and in 1939 the amount thereof was refunded to it. The total recoveries secured by all affiliated corporations in subsequent years did not equal their consolidated net loss for 1930. Held, that under section 116,…
1Opinion of the Court
OPINION.
Van Fossan, Judge:
The issue presented is whether or not the petitioner is entitled to the statutory recovery exclusion under the provisions of section 116 of the Revenue Act of 1942.1 The specific problem posed is whether the petitioner, which was affiliated with a group of corporations filing a consolidated return in 1930 and which had a net income for that year although the group had a large net loss, obtained a tax benefit from the deduction of amounts paid by it as documentary stamp taxes during that year and recovered by it in 1939. If the petitioner obtained no such tax benefit,…
2Cited by13 opinions
- Occidental Petroleum Corp. v. CommissionerUnited States Tax Court · 1984
- Ridge Realization Corp. v. CommissionerUnited States Tax Court · 1966
- First Nat'l Bank v. CommissionerUnited States Tax Court · 1954
- Hillsboro Nat'l Bank v. CommissionerUnited States Tax Court · 1979
- Home Sav. & Loan Co. v. CommissionerUnited States Tax Court · 1962
8 more not listed; retrieve them via the Exa API.