MIDLAND-ROSS CORPORATION v. United States

MEMORANDUM AND ORDER

WILLIAM K. THOMAS, District Judge.

Plaintiff, Midland-Ross Corporation, as transferee and successor of Surface Combustion Corporation, sues for a refund of federal income taxes paid as a result of the disallowance of a deduction by the District Director of certain business expenses paid in connection with the sale, upon liquidation, of Surface’s assets to Midland, and a further disallowance of a depreciation deduction taken by Surface. As to a gain of Surface in the sale of its assets to Midland, the Government claims income tax is due while Midland asserts non-recognition…