Ingle Coal Corporation v. United States

LITTLETON, Judge.

The plaintiff, a corporation, sues for $32,289.85, with interest thereon, which represents alleged overpayments of Federal income taxes for 1947 and 1948. The issue presented is whether certain “over-riding royalties” paid by plaintiff in 1947 and 1948 are deductible as ordinary and necessary expenses under section 23(a) (1) (A) of the Internal Revenue Code, 26 U.S.C. § 23(a). The facts have been stipulated and those material may be summarized as follows: The Ingle Coal Company, plaintiff’s predecessor, (hereinafter sometimes referred to as the old corporation) was a family…