Victoria Paper Mills Co. v. Commissioner
United States Board of Tax Appeals
In 1931 the petitioner obtained judgments against the city of Fulton, New York, for the recovery of property taxes paid in excess for prior years, which it had deducted from gross income in income tax returns. It assigned the judgments to a bank, guaranteeing payment thereof, and received credit at the bank for the value thereof. The amount of the credit was credited to surplus upon the petitioner's books of account kept on the accrual basis.
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In 1931 the petitioner obtained judgments against the city of Fulton, New York, for the recovery of property taxes paid in excess for prior years, which it had deducted from gross income in income tax returns. It assigned the judgments to a bank, guaranteeing payment thereof, and received credit at the bank for the value thereof. The amount of the credit was credited to surplus upon the petitioner's books of account kept on the accrual basis. Held, that the amount was taxable income of the petitioner for 1931.
1Opinion of the Court
*667OPINION.
Smith :
Tbis proceeding involves a deficiency in petitioner’s income tax for 1931 in the amount of $4,043.30. The petitioner contends that the respondent erred (1) in disallowing the deduction of attorney fees in the amount of $5,000, and (2) in including in its income $38,260.02 representing a refund of local taxes for prior years.
The petitioner is a corporation engaged in the manufacture of paper and paper products at Fulton, New York. In its return for 1931 it deducted as an ordinary and necessary business expense $12,077.64 representing fees paid for “ Legal and Professional…
2Cases cited3 opinions
- North American Oil Consolidated v. BurnetSupreme Court of the United States · 1932
- Burnet v. Sanford & Brooks Co.Supreme Court of the United States · 1931
- United States v. S. S. White Dental Manufacturing Co.Supreme Court of the United States · 1927
3Cited by16 opinions
- Isaac G. Johnson & Co. v. United StatesCourt of Appeals for the Second Circuit · 1945
- Wilson v. CommissionerUnited States Tax Court · 1968
- Bartlett v. DelaneyDistrict Court, D. Massachusetts · 1948
- Addressograph-Multigraph Corp. v. Comm'rUnited States Tax Court · 1945
- Herbst v. CommissionerUnited States Tax Court · 1943
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