Montana, Wyoming & Southern R. v. Commissioner

Third Circuit

Montana, Wyoming & Southern R. v. Commissioner

77 F.2d 1007, 16 A.F.T.R. (P-H) 226, 1935 U.S. App. LEXIS 4813

CourtCourt of Appeals for the Third Circuit

DecidedMay 16, 1935

DocketNo. 5687

StatusPublished

Cited by3 cases

This text of 77 F.2d 1007 (Montana, Wyoming & Southern R. v. Commissioner) is published on Counsel Stack Legal Research, covering Court of Appeals for the Third Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

Montana, Wyoming & Southern R. v. Commissioner, 77 F.2d 1007, 16 A.F.T.R. (P-H) 226, 1935 U.S. App. LEXIS 4813 (3d Cir. 1935).

Pincite

Opinion

PER CURIAM.

In this income tax case it appears the taxpayer, an operating railroad corporation, had, in 1909, in the purchase of railroad property, issued $900,000 ®f its own bonds at par. In the tax year of 1930 it bought back $55,000 par value of these bonds for $39,832.50. While it has not surrendered such bonds to the trustee for cancellation, it still owns them, and by its purchase has proportionately paid such part of its indebtedness. On hearing, the Commissioner held the taxpayer had made a profit of the difference between the par issue price and the lower purchase price. The Tax Board approved the Commissioner’s holding, saying: “The principle applicable here is that of United States v. Kirby Lumber Co., 284 U. S. 1, 52 S. Ct. 4, 76 L. Ed. 131, and Helvering v. American Chicle Co., 291 U. S. 426, 54 S. Ct. 460, 78 L. Ed. [1008]*1008891, in both of which the taxpayers bought in bonds at less than face value.”

Finding no error in the Tax Board’s ruling, it is affirmed.

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

PER CURIAM.

In this income tax case it appears the taxpayer, an operating railroad corporation, had, in 1909, in the purchase of railroad property, issued $900,000 ®f its own bonds at par. In the tax year of 1930 it bought back $55,000 par value of these bonds for $39,832.50. While it has not surrendered such bonds to the trustee for cancellation, it still owns them, and by its purchase has proportionately paid such part of its indebtedness. On hearing, the Commissioner held the taxpayer had made a profit of the difference between the par issue price and the lower purchase price. The Tax Board approved the Commissioner’s holding, saying: “The principle applicable here is that of United States v. Kirby Lumber Co., 284 U. S. 1, 52 S. Ct. 4, 76 L. Ed. 131, and Helvering v. American Chicle Co., 291 U. S. 426, 54 S. Ct. 460, 78 L. Ed. [1008]*1008891, in both of which the taxpayers bought in bonds at less than face value.”

Finding no error in the Tax Board’s ruling, it is affirmed.

Cite This Page — Counsel Stack

Bluebook (online)

77 F.2d 1007, 16 A.F.T.R. (P-H) 226, 1935 U.S. App. LEXIS 4813, Counsel Stack Legal Research, https://law.counselstack.com/opinion/montana-wyoming-southern-r-v-commissioner-ca3-1935.

Opinion

Related

Cite This Page — Counsel Stack