Poinsett Mills v. Commissioner
United States Board of Tax Appeals
A contribution made by a corporation to a church maintained in its mill village, producing direct benefit to the corporation, is an allowable deduction under section 234(a) of the Revenue Act of 1918.
1Opinion of the Court
*7OPINION.
Geaupner:
It is the contention of the Commissioner that a corporation may be allowed a deduction under section 234(a) (1) of the Revenue Act of 1918 only when the amount claimed is an “ ordinary and necessary ” expense in “ carrying on ” its business. Insistence is made for a very limited interpretation of the phrase “ ordinary and necessary” and of the words'composing the. phrase.
The testimony adduced showed that the,piill village of the Poinsett Mills was located on property owned by the corporation and was inhabited solely by employees of the company and their dependents.
*8The church…
2Cited by10 opinions
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- Adam, Meldrum & Anderson Co. v. CommissionerUnited States Board of Tax Appeals · 1933
- Atlantic Coast Line R. R. v. CommissionerUnited States Board of Tax Appeals · 1934
- Capital Traction Co. v. CommissionerUnited States Board of Tax Appeals · 1933
- First Nat'l Bank v. CommissionerUnited States Board of Tax Appeals · 1937
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