Commissioner of Internal Revenue v. Jackson Investment Company, Commissioner of Internal Revenue v. West Shore Company

BARNES, Circuit Judge:

The Commissioner of Internal Revenue has brought this petition to review decisions of the Tax Court (41 T.C. 675 (1964)) involving federal income taxes for the taxable years 1956 through 1958. The amounts in controversy involve distributions made by respondents, Jackson Investment Company and West Shore Company, partners in George W. Carter Company, to a retiring partner, Ethel M. Carter. Petitioner concluded that the distributions were not deductible expenses, and, consequently, assessed deficiencies against Jackson in the aggregate amount of $9,848.18 and against West…