Batten, Barton, Durstine & Osborn, Inc. v. Commissioner
United States Tax Court
Petitioner is a New York corporation, engaged in the business of advertising agency. It has no stockholders except employees. Its staff consists largely of creative writers, artists, and radio directors, upon whose work the success of the business depends.
Read the full summary
Petitioner is a New York corporation, engaged in the business of advertising agency. It has no stockholders except employees. Its staff consists largely of creative writers, artists, and radio directors, upon whose work the success of the business depends. Petitioner's stockholders, upon its organization in 1928, donated to its treasury 20 per cent of the shares initially issued to them for the purpose of having shares of stock available for issuance to employees who demonstrated talent and ability and who contributed to the success of the business. Petitioner, after its organization, also…
1Opinion of the Court
OPINION.
Black, Judge:
The issue presented in this proceeding is whether petitioner realized taxable income upon sales in 1939 and 1941 of shares of its own stock.
The parties are in agreement that the applicable regulation is section 19.22 (a)-16 of Regulations 103.1
Respondent contends that all of the gain from the sale of petitioner’s treasury stock is taxable. He argues that, in view of the extensive activity in petitioner’s stock, petitioner was dealing in its own shares “as it might in the shares of another corporation.”
Petitioner does not question the correctness of respondént’s…
2Cases cited5 opinions
- Dr. Pepper Bottling Co. v. CommissionerUnited States Tax Court · 1942
- Cluett, Peabody & Co. v. CommissionerUnited States Tax Court · 1944
- Brockman Oil Well Cementing Co. v. CommissionerUnited States Tax Court · 1943
- Rollins Burdick Hunter Co. v. CommissionerUnited States Tax Court · 1947
- M. Conley Co. v. CommissionerUnited States Tax Court · 1946
3Cited by16 opinions
- Duncan Industries, Inc., etc. v. CommissionerUnited States Tax Court · 1979
- Commissioner of Internal Revenue v. Landers CorpCourt of Appeals for the Sixth Circuit · 1954
- Commissioner of Internal Revenue v. H. W. Porter & Co., Inc.Court of Appeals for the Third Circuit · 1951
- Anderson, Clayton & Co. v. United StatesUnited States Court of Claims · 1954
- Burrus Mills, Inc. v. CommissionerUnited States Tax Court · 1954
11 more not listed; retrieve them via the Exa API.