Amtorg Trading Corp. v. Commissioner of Internal Revenue

L. HAND, Circuit Judge.

The question at issue upon this appeal is as to the right of the taxpayer to deduct certain charges from its gross income for the years 1924 and 1925, as “ordinary and necessary expenses” under section 234 (a) (1), Revenue Act 1924, 43 Stat. 283, 26 USCA § 986 (a) (1) or as' “taxes paid or accrued,” under section 234 (a) (3), 26 USCA § 986 (a) (3). The Commissioner disallowed the deductions, the taxpayer appealed to the Board, which affirmed his ruling. The case comes here on appeal from its order. The facts are as follows: The taxpayer is a New York corporation formed…