H & H Drilling Co. v. Commissioner
United States Tax Court
Petitioner issued its check, for salary, to its principal stockholder (not an officer) who held more than 50 per cent of its stock. He endorsed it the same day and it was immediately deposited by petitioner in its bank account. The stockholder's account on petitioner's books was first charged, then credited, with the amount of the check. Petitioner is not shown to have had money to cover the check.
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Petitioner issued its check, for salary, to its principal stockholder (not an officer) who held more than 50 per cent of its stock. He endorsed it the same day and it was immediately deposited by petitioner in its bank account. The stockholder's account on petitioner's books was first charged, then credited, with the amount of the check. Petitioner is not shown to have had money to cover the check. Held, neither actual nor constructive payment was proven and no error is shown by the Commissioner in denying deduction under section 24 (c) of the Internal Revenue Code.
1Opinion of the Court
H & H Drilling Co., Inc., Petitioner, v. Commissioner of Internal Revenue, Respondent
H & H Drilling Co. v. Commissioner
Docket No. 24030
United States Tax Court
15 T.C. 961; 1950 U.S. Tax Ct. LEXIS 9;
December 28, 1950, Promulgated
Decision will be entered under Rule 50.
Petitioner issued its check, for salary, to its principal stockholder (not an officer) who held more than 50 per cent of its stock. He endorsed it the same day and it was immediately deposited by petitioner in its bank account. The stockholder's account on petitioner's books was first charged, then credited, with the amount of the…
2Cases cited5 opinions
- Michael Flynn Mfg. Co. v. CommissionerUnited States Tax Court · 1944
- Ohio Battery & Ignition Co. v. CommissionerUnited States Tax Court · 1945
- P. G. Lake, Inc. v. CommissionerUnited States Tax Court · 1944
- Akron Welding & Spring Co. v. CommissionerUnited States Tax Court · 1948
- H & H Drilling Co. v. CommissionerUnited States Tax Court · 1950