Mark E. Schlude and Marzalie Schlude, Husband and Wife v. Commissioner of Internal Revenue

Eighth Circuit

Mark E. Schlude and Marzalie Schlude, Husband and Wife v. Commissioner of Internal Revenue

296 F.2d 721, 8 A.F.T.R.2d (RIA) 5966, 1961 U.S. App. LEXIS 2937

Court of Appeals for the Eighth Circuit·Decided December 15, 1961·No. 16443_1·Published·Cited by 8 cases

Opinion

PER CURIAM.

For the second time this case is here for determination. Our first opinion, 283 F.2d 234, reversed the decision of the' Tax Court. On June 19, 1961, the Supreme Court of the United States rendered its decision in American Automobile Association v. United States, 367 U.S. 687, 81 S.Ct. 1727, 6 L.Ed.2d 1109. On the same day the Supreme Court, by per curiam order in this case, directed that “(t)he judgment is vacated and the case is remanded in light of American Automobile Association v. United States * * Commissioner of Internal Revenue v. Schlude et ux., 367 U.S. 911, 81 S.Ct. 1915, 6 L.Ed.2d 1248. On October 9, 1961, in denying petition for rehearing, the Supreme Court, 368 U.S. 873, 82 S.Ct. 25, amended its per curiam order of June 19, 1961, as follows: “The judgment is vacated and the case is remanded for further consideration in the light of American Automobile Association v. United States * * (Emphasis supplied.)

Pursuant to our invitation, counsel for petitioners and the Commissioner filed supplemental briefs and presented oral arguments directed largely to the question of whether this case falls within the ambit of the teachings of American Automobile Association, supra. In light of that case we have carefully examined and considered petitioners’ method of accrual accounting and are convinced that such method does not, for income tax purposes, clearly reflect income.

Accordingly, our judgment previously entered is vacated, and the decision of the Tax Court is affirmed.

Free access — add to your briefcase to read the full text and ask questions with AI

PER CURIAM.

For the second time this case is here for determination. Our first opinion, 283 F.2d 234, reversed the decision of the' Tax Court. On June 19, 1961, the Supreme Court of the United States rendered its decision in American Automobile Association v. United States, 367 U.S. 687, 81 S.Ct. 1727, 6 L.Ed.2d 1109. On the same day the Supreme Court, by per curiam order in this case, directed that “(t)he judgment is vacated and the case is remanded in light of American Automobile Association v. United States * * Commissioner of Internal Revenue v. Schlude et ux., 367 U.S. 911, 81 S.Ct. 1915, 6 L.Ed.2d 1248. On October 9, 1961, in denying petition for rehearing, the Supreme Court, 368 U.S. 873, 82 S.Ct. 25, amended its per curiam order of June 19, 1961, as follows: “The judgment is vacated and the case is remanded for further consideration in the light of American Automobile Association v. United States * * (Emphasis supplied.)

Pursuant to our invitation, counsel for petitioners and the Commissioner filed supplemental briefs and presented oral arguments directed largely to the question of whether this case falls within the ambit of the teachings of American Automobile Association, supra. In light of that case we have carefully examined and considered petitioners’ method of accrual accounting and are convinced that such method does not, for income tax purposes, clearly reflect income.

Accordingly, our judgment previously entered is vacated, and the decision of the Tax Court is affirmed.

Mark E. Schlude and Marzalie Schlude, Husband and Wife v. Commissioner of Internal Revenue, 296 F.2d 721, 8 A.F.T.R.2d (RIA) 5966, 1961 U.S. App. LEXIS 2937 (8th Cir. 1961).

Pincite

296 F.2d 721 (Mark E. Schlude and Marzalie Schlude, Husband and Wife v. Commissioner of Internal Revenue) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Opinion

Related