City Auto Stamping Co. v. Commissioner
United States Tax Court
The petitioner, a manufacturing corporation, in 1933 paid approximately $ 300,000 on judgments in suits brought by the Superintendent of Banks alleging unlawful preference in withdrawals of deposits.
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The petitioner, a manufacturing corporation, in 1933 paid approximately $ 300,000 on judgments in suits brought by the Superintendent of Banks alleging unlawful preference in withdrawals of deposits. In 1937 it paid approximately $ 70,000 in settlement of a suit brought against it involving a dispute over a contract as to patent rights, also in settlement of a suit brought by stockholders, alleging mismanagement in connection with the patent rights and the litigation growing therefrom. In computing excess profits taxes for 1941 the Commissioner denied restoration of deduction of $ 70,000…
1Opinion of the Court
OPINION.
Disnet, Judge:
There is, as the respondent on brief states, no dispute about the essential facts presented to us here. The only issue is whether the respondent erred in disallowing as an abnormality, under the provisions of section 711 (b) (1) (H) of the Internal Revenue Code (providing for computation of excess profits tax income by disregarding certain deductions earlier taken), the above described deductions taken by the petitioner in 1937, a base period year. In that year the petitioner paid out, and deducted on its income tax returns, $48,-023.99 in settlement of the Dole Valve…
2Cases cited7 opinions
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