Rotorite Corporation v. Commissioner of Internal Rev.

EVANS, Circuit Judge.

The payment of $65,797.06 to petitioner in the year 1935 has become the subject of uncompromising controversy between the Commissioner and taxpayer. Respondent contends that this sum was a part of petitioner’s taxable income for 1935. Petitioner argues that the amount was paid as a part of the purchase price of patents which it owned.

More specifically the litigation is over a deficiency tax totalling $11,702.91 which was made up of the following items: $3,784.37,'income taxes, $6,336.83, personal holding company surtaxes, and $1,581.71, penalty.

A subsidiary issue concerns…