Arkansas Louisiana Gas Company v. Commissioner of Internal Revenue

Fifth Circuit

Arkansas Louisiana Gas Company v. Commissioner of Internal Revenue

331 F.2d 850, 13 A.F.T.R.2d (RIA) 1413, 1964 U.S. App. LEXIS 5413

Court of Appeals for the Fifth Circuit·Decided May 11, 1964·No. 20964_1·Published·Cited by 4 cases

Opinion

PER CURIAM.

The question here is whether the Tax Court erred in holding that the expenses and costs incurred in declaring and paying stock dividends to petitioner’s shareholders were capital in nature and did not constitute ordinary and necessary business expenses, deductible from gross income under the provisions of the Internal Revenue Code. In General Banc-shares Corp. v. Commissioner of Internal Revenue, 8 Cir., 326 F.2d 712, the Court affirmed a decision of the Tax Court similar to that which is here appealed from. We fully concur in the carefully reasoned opinion in that case and affirm the judgment of the Tax Court on the basis of that opinion.

Judgment affirmed.

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PER CURIAM.

The question here is whether the Tax Court erred in holding that the expenses and costs incurred in declaring and paying stock dividends to petitioner’s shareholders were capital in nature and did not constitute ordinary and necessary business expenses, deductible from gross income under the provisions of the Internal Revenue Code. In General Banc-shares Corp. v. Commissioner of Internal Revenue, 8 Cir., 326 F.2d 712, the Court affirmed a decision of the Tax Court similar to that which is here appealed from. We fully concur in the carefully reasoned opinion in that case and affirm the judgment of the Tax Court on the basis of that opinion.

Judgment affirmed.

Arkansas Louisiana Gas Company v. Commissioner of Internal Revenue, 331 F.2d 850, 13 A.F.T.R.2d (RIA) 1413, 1964 U.S. App. LEXIS 5413 (5th Cir. 1964).

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