The Valley Camp Coal Company v. Commissioner of Internal Revenue

Sixth Circuit

The Valley Camp Coal Company v. Commissioner of Internal Revenue

405 F.2d 1208

CourtCourt of Appeals for the Sixth Circuit

DecidedJanuary 14, 1969

Docket18517_1

StatusPublished

Cited by4 cases

This text of 405 F.2d 1208 (The Valley Camp Coal Company v. Commissioner of Internal Revenue) is published on Counsel Stack Legal Research, covering Court of Appeals for the Sixth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

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The Valley Camp Coal Company v. Commissioner of Internal Revenue, 405 F.2d 1208 (6th Cir. 1969).

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Opinion

PER CURIAM.

The petitioner was the lessee of the mineral rights of the Alexander Mine in Marshall County, West Virginia. After operating this mine, the petitioner subsequently purchased the mine from the owner-lessor, utilizing its wholly owned subsidiary as a conduit for payment of the purchase price and to hold the legal title. The Tax Court found that no valid business purpose was served by allowing the subsidiary to hold the legal title and that the sole purpose of handling the transaction in this manner was tax avoidance.

We hold that the findings of fact and the inferences drawn therefrom by the Tax Court are not clearly erroneous. Commissioner of Internal Revenue v. Duberstein, 363 U.S. 278, 80 S.Ct. 1190, 4 L.Ed.2d 1218.

The judgment of the Tax Court is affirmed upon the memorandum opinion of that Court prepared by Judge Harron. T.C.Memo 1967—225; Commissioner of Internal Revenue v. Court Holding Co., 324 U.S. 331, 65 S.Ct. 707, 89 L.Ed. 981; Ach v. Commissioner of Internal Revenue, 358 F.2d 342 (6th Cir.).

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PER CURIAM.

The petitioner was the lessee of the mineral rights of the Alexander Mine in Marshall County, West Virginia. After operating this mine, the petitioner subsequently purchased the mine from the owner-lessor, utilizing its wholly owned subsidiary as a conduit for payment of the purchase price and to hold the legal title. The Tax Court found that no valid business purpose was served by allowing the subsidiary to hold the legal title and that the sole purpose of handling the transaction in this manner was tax avoidance.

We hold that the findings of fact and the inferences drawn therefrom by the Tax Court are not clearly erroneous. Commissioner of Internal Revenue v. Duberstein, 363 U.S. 278, 80 S.Ct. 1190, 4 L.Ed.2d 1218.

The judgment of the Tax Court is affirmed upon the memorandum opinion of that Court prepared by Judge Harron. T.C.Memo 1967—225; Commissioner of Internal Revenue v. Court Holding Co., 324 U.S. 331, 65 S.Ct. 707, 89 L.Ed. 981; Ach v. Commissioner of Internal Revenue, 358 F.2d 342 (6th Cir.).

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405 F.2d 1208, Counsel Stack Legal Research, https://law.counselstack.com/opinion/the-valley-camp-coal-company-v-commissioner-of-internal-revenue-ca6-1969.

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