William C. Atwater & Co. v. Commissioner
United States Tax Court
1. S, an employee of petitioner, had in prior years acquired 100 shares of petitioner's stock, which were subsequently increased to 1,500 shares by a stock dividend, under an employment arrangement by which petitioner agreed to repurchase the stock upon S's separation from petitioner's services. S resigned April 23, 1936, and demanded that petitioner purchase his share at "book value," plus two years of earnings. Petitioner refused.
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1. S, an employee of petitioner, had in prior years acquired 100 shares of petitioner's stock, which were subsequently increased to 1,500 shares by a stock dividend, under an employment arrangement by which petitioner agreed to repurchase the stock upon S's separation from petitioner's services. S resigned April 23, 1936, and demanded that petitioner purchase his share at "book value," plus two years of earnings. Petitioner refused. S brought suit and in 1943 the Court of Appeals of New York affirmed the lower court's decision in favor of S. Petitioner paid this judgment in 1943, together…
1Opinion of the Court
OPINION.
Black, Judge:
The issues fall into three main divisions, previously mentioned, and will be considered in that order.
Steinbugler Litigation Issues.
The issues under this main division are whether the respondent erred in making the adjustments labeled (a) and (b) for 1942 and (a), (b), and (c) for 1943, which we have set out in our opening statement.
We first consider adjustment (b) for 1943, because upon our decision as to that adjustment will largely depend our decision as to the other four adjustments. Petitioner deducted on its return for 1943 the amount of $308,909 as “Judgment…
2Cases cited11 opinions
- Welch v. HelveringSupreme Court of the United States · 1933
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- Burnet v. Sanford & Brooks Co.Supreme Court of the United States · 1931
- Kornhauser v. United StatesSupreme Court of the United States · 1928
- Lucas v. Ox Fibre Brush Co.Supreme Court of the United States · 1930
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