Commissioner of Internal Rev. v. Langwell Real Estate Corp.

(after stating the facts as above).

We find it impossible to escape the conclusion that, upon the tenant’s release of its interest in said $50,000, respondent was enriched by that amount. Regulations 62, Treasury Department, article 50. It was relieved of its obligation to pay this amount to the tenant at the expiration of the lease. At the same time, and as a part of the same transaction, respondent released the tenant from its lease. Whether resp ondent suffered a loss by reason of the termination of the lease presents another issue, which is not covered by the findings of the Board of Tax…