Vesuvius Crucible Company, a Pennsylvania Corporation v. Commissioner of Internal Revenue

Third Circuit

Vesuvius Crucible Company, a Pennsylvania Corporation v. Commissioner of Internal Revenue

356 F.2d 948, 17 A.F.T.R.2d (RIA) 270, 1966 U.S. App. LEXIS 7289

CourtCourt of Appeals for the Third Circuit

DecidedFebruary 2, 1966

Docket15475

StatusPublished

Cited by5 cases

This text of 356 F.2d 948 (Vesuvius Crucible Company, a Pennsylvania Corporation v. Commissioner of Internal Revenue) 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

Vesuvius Crucible Company, a Pennsylvania Corporation v. Commissioner of Internal Revenue, 356 F.2d 948, 17 A.F.T.R.2d (RIA) 270, 1966 U.S. App. LEXIS 7289 (3d Cir. 1966).

Pincite

Opinion

PER CURIAM.

The tax problem here presented is whether the taxpayer corporation was entitled to deduct from its income for 1957 payments totaling $18,000. which it made during that year to the widow of its deceased president. If the payments qualify as an ordinary and necessary business expense they are of course so deductible under Section 162 of the 1954 Revenue Code. That question is one of fact. Commissioner v. Heininger, 320 U.S. 467, 475, 64 S.Ct. 249, 88 L.Ed. 171 (1943). The motivation alleged for the payments was to provide an added incentive to present as well as prospective principals of the company to remain with the company or to take employment with the company.

The Tax Court on the basis of the record evidence concluded that petitioner had failed to establish with adequate credible evidence the business necessity for the above stated payments. From our independent examination of the trial record we find that the conclusion of the Tax Court is fully justified on the evidence of the whole case.

The decision of the Tax Court will be affirmed.

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

PER CURIAM.

The tax problem here presented is whether the taxpayer corporation was entitled to deduct from its income for 1957 payments totaling $18,000. which it made during that year to the widow of its deceased president. If the payments qualify as an ordinary and necessary business expense they are of course so deductible under Section 162 of the 1954 Revenue Code. That question is one of fact. Commissioner v. Heininger, 320 U.S. 467, 475, 64 S.Ct. 249, 88 L.Ed. 171 (1943). The motivation alleged for the payments was to provide an added incentive to present as well as prospective principals of the company to remain with the company or to take employment with the company.

The Tax Court on the basis of the record evidence concluded that petitioner had failed to establish with adequate credible evidence the business necessity for the above stated payments. From our independent examination of the trial record we find that the conclusion of the Tax Court is fully justified on the evidence of the whole case.

The decision of the Tax Court will be affirmed.

Cite This Page — Counsel Stack

Bluebook (online)

356 F.2d 948, 17 A.F.T.R.2d (RIA) 270, 1966 U.S. App. LEXIS 7289, Counsel Stack Legal Research, https://law.counselstack.com/opinion/vesuvius-crucible-company-a-pennsylvania-corporation-v-commissioner-of-ca3-1966.

Opinion

Related

Cite This Page — Counsel Stack