Continental Screen Co. v. Commissioner

In 1924 the petitioner was served with a notice of complaint by the Federal Trade Commission, in which violation of the Sherman Act by the petitioner was alleged and a date set for hearing before the Commission. The petitioner employed eminent counsel to defend it against such charge. On October 14, 1925, the Commission entered an order dismissing the complaint. The petitioner paid bills as rendered by its attorneys for services in 1925 and 1926 in the amounts of $40,000 and $15,000, respectively. Held that the amounts paid as attorneys' fees were deductible from gross income as ordinary and…