Brumley-Donaldson Company v. Commissioner of Internal Revenue

I disagree. The sole issue before the Tax Court was whether the taxpayer (Brumley-Donaldson) was prevented from carrying over previously incurred net operating losses of the acquired corporation (St. Louis) because the “principal purpose” of the acquisition was the avoidance of Federal income taxes. Int. Rev.Code of 1954, § 269(a). Taxpayer entered the proceeding in the Tax Court faced with the presumption that the Commissioner’s administrative determination, that tax avoidance was the principal purpose, was correct. However, upon the introduction of evidence by the taxpayers, provided that…