Guaranty Trust Co. v. New York & Queens County Railway Co.

Appellate Division of the Supreme Court of New York

Guaranty Trust Co. v. New York & Queens County Railway Co.

257 A.D. 824, 11 N.Y.S.2d 1006, 22 A.F.T.R. (P-H) 1195, 1939 N.Y. App. Div. LEXIS 8045

CourtAppellate Division of the Supreme Court of the State of New York

DecidedMay 1, 1939

StatusPublished

This text of 257 A.D. 824 (Guaranty Trust Co. v. New York & Queens County Railway Co.) is published on Counsel Stack Legal Research, covering Appellate Division of the Supreme Court of the State of New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

Guaranty Trust Co. v. New York & Queens County Railway Co., 257 A.D. 824, 11 N.Y.S.2d 1006, 22 A.F.T.R. (P-H) 1195, 1939 N.Y. App. Div. LEXIS 8045 (N.Y. Ct. App. 1939).

Pincite

Opinion

In an action to foreclose a mortgage on property of the Steinway Railway Company, The United States of America filed an intervening petition against the receivers for the recovery of deficiencies in Federal income taxes assessed against the receivers for the years 1932 and 1933. Judgment unanimously affirmed, without costs. The respondents were entitled, under section 23, paragraph (b), of the Revenue Act of 1932 (47 U. S. Stat. at Large, 179), to deduct from gross income the interest accrued within each of the taxable years on the first mortgage bonds of the corporation. The refund of $127,863.66 in 1932 from the receiver of the New York [825]*825and Queens County Railway Company for prior excess charges for electric power was not taxable income for the year in which the refund was received. Since the respondents kept their accounts and filed their income tax returns on an accrual basis, the amount refunded is to be allocated to the years in which overpayments were made. (Commissioner of Internal Revenue v. Old Dominion S. S. Co., 47 F. [2d] 148.) Present —■ Lazansky, P. J., Hagarty, Johnston, Taylor and Close, JJ.

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In an action to foreclose a mortgage on property of the Steinway Railway Company, The United States of America filed an intervening petition against the receivers for the recovery of deficiencies in Federal income taxes assessed against the receivers for the years 1932 and 1933. Judgment unanimously affirmed, without costs. The respondents were entitled, under section 23, paragraph (b), of the Revenue Act of 1932 (47 U. S. Stat. at Large, 179), to deduct from gross income the interest accrued within each of the taxable years on the first mortgage bonds of the corporation. The refund of $127,863.66 in 1932 from the receiver of the New York [825]*825and Queens County Railway Company for prior excess charges for electric power was not taxable income for the year in which the refund was received. Since the respondents kept their accounts and filed their income tax returns on an accrual basis, the amount refunded is to be allocated to the years in which overpayments were made. (Commissioner of Internal Revenue v. Old Dominion S. S. Co., 47 F. [2d] 148.) Present —■ Lazansky, P. J., Hagarty, Johnston, Taylor and Close, JJ.

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Bluebook (online)

257 A.D. 824, 11 N.Y.S.2d 1006, 22 A.F.T.R. (P-H) 1195, 1939 N.Y. App. Div. LEXIS 8045, Counsel Stack Legal Research, https://law.counselstack.com/opinion/guaranty-trust-co-v-new-york-queens-county-railway-co-nyappdiv-1939.