Cook v. Commissioner
United States Board of Tax Appeals
1. Held, under the facts shown, that petitioner sustained a loss of $10,000 in the taxable year through his investment in an oil lease, which is deductible under section 241(a) of the Revenue Act of 1924. 2. Held, where thr espondent seeks affirmative relief and asks for an increased deficiency, based upon allegations in his answer of a deduction erroneously allowed, the burden is upon him to produce evidence showing that the item so disputed was, in fact, allowed as a…
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1. Held, under the facts shown, that petitioner sustained a loss of $10,000 in the taxable year through his investment in an oil lease, which is deductible under section 241(a) of the Revenue Act of 1924. 2. Held, where thr espondent seeks affirmative relief and asks for an increased deficiency, based upon allegations in his answer of a deduction erroneously allowed, the burden is upon him to produce evidence showing that the item so disputed was, in fact, allowed as a deduction in his computation of the tax at issue.
1Opinion of the Court
*94OPINION.
Lansdon:
The law here invoked by the parties to support their respective contentions is found in the provisions of the Revenue Act of 1921, reading as follows:
Sec. 214. (a) In computing net income there shall be allowed as deductions:(1) All the ordinary and necessary expenses paid or incurred during the taxable year in carrying on any trade or business, * * *
* * * # * * *(4) Losses sustained during the taxable year and not compensated for by insurance or otherwise, if incurred in trade or business; * * *(5) Losses .sustained during the taxable year and not compensated for by insurance…
2Cases cited1 opinion
- Flint v. Stone Tracy Co.Supreme Court of the United States · 1911
3Cited by2 opinions
- Cook v. United StatesCourt of Appeals for the Fifth Circuit · 1940
- Cook v. CommissionerUnited States Board of Tax Appeals · 1932