Sprague-Sells Corp. v. Commissioner
United States Board of Tax Appeals
Corporation A issued a portion of its stock for all of the shares of stock and all of the assets of corporation B. Corporation B was not dissolved although from the time it parted with its assets; it had neither income nor expenses. Held, that the net losses of corporation B may not be deducted from the gross income of corporation A.
1Opinion of the Court
*1169OPINION.
Smith:
In these proceedings the petitioner claims the right to bring forward and deduct from its gross incomes net losses sustained by the Sprague Canning Machinery Co. for the prior years. This claim is predicated upon the theory that the business conducted by the petitioner is the same as that which was conducted by the Sprague Canning Machinery Co. and that there was in effect a merger of the two corporations. The petitioner relies especially upon the decision of the court in Industrial Cotton Mills Co. v. Commissioner, 61 Fed. (2d) 291. Since the hearing of these proceedings, the…
2Cases cited5 opinions
- New Colonial Ice Co. v. HelveringSupreme Court of the United States · 1934
- Borg & Beck Co. v. CommissionerUnited States Board of Tax Appeals · 1931
- Automatic Fire Alarm Co. v. CommissionerUnited States Board of Tax Appeals · 1928
- Houghton & Dutton Co. v. CommissionerUnited States Board of Tax Appeals · 1932
- Margay Oil Corp. v. CommissionerUnited States Board of Tax Appeals · 1932
3Cited by2 opinions
- Sprague-Sells Corp. v. CommissionerUnited States Board of Tax Appeals · 1934
- Stutz Motor Car Co. of America v. United StatesDistrict Court, S.D. Indiana · 1936