Indianapolis Street Railway Co. v. Commissioner

Board of Tax Appeals

Indianapolis Street Railway Co. v. Commissioner

7 B.T.A. 397

CourtUnited States Board of Tax Appeals

DecidedJune 17, 1927

DocketDocket No. 8787

StatusPublished

Cited by1 cases

This text of 7 B.T.A. 397 (Indianapolis Street Railway Co. v. Commissioner) is published on Counsel Stack Legal Research, covering United States Board of Tax Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

Indianapolis Street Railway Co. v. Commissioner, 7 B.T.A. 397 (bta 1927).

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Opinion

[398]*398OPINION.

Littleton :

The Commissioner held that the petitioner derived a taxable gain in 1923 when it purchased the bonds of its predecessor companies which it had assumed when it took over their assets, at [399]*399less than par. Petitioner contends that no taxable gain resulted from such purchase. The Board has heretofore had occasion to consider this question and has held that the retirement by a corporation of its bonds at less than par does not result in taxable gain. Independent Brewing Co. of Pittsburgh, 4 B. T. A. 870; New Orleans, Texas & Mexico Ry. Co., 6 B. T. A. 436. See also Kerbaugh-Empire Co. v. Bowers, 300 Fed. 938; Bowers v. Kerbaugh-Empire Co., 271 U. S. 170; Meyer Jewelry Co., 3 B. T. A. 1319. It is accordingly held that the Commissioner erred in his determination that the petitioner derived a taxable gain upon the retirement of the bonds involved in this proceeding.

Judgment will be entered on IS days'1 notice, under Rule 50.

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[398]*398OPINION.

Littleton :

The Commissioner held that the petitioner derived a taxable gain in 1923 when it purchased the bonds of its predecessor companies which it had assumed when it took over their assets, at [399]*399less than par. Petitioner contends that no taxable gain resulted from such purchase. The Board has heretofore had occasion to consider this question and has held that the retirement by a corporation of its bonds at less than par does not result in taxable gain. Independent Brewing Co. of Pittsburgh, 4 B. T. A. 870; New Orleans, Texas & Mexico Ry. Co., 6 B. T. A. 436. See also Kerbaugh-Empire Co. v. Bowers, 300 Fed. 938; Bowers v. Kerbaugh-Empire Co., 271 U. S. 170; Meyer Jewelry Co., 3 B. T. A. 1319. It is accordingly held that the Commissioner erred in his determination that the petitioner derived a taxable gain upon the retirement of the bonds involved in this proceeding.

Judgment will be entered on IS days'1 notice, under Rule 50.

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7 B.T.A. 397, Counsel Stack Legal Research, https://law.counselstack.com/opinion/indianapolis-street-railway-co-v-commissioner-bta-1927.

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