Case ID: bta_5/html/0479-01.html
Source: Caselaw Access Project
Author: {"author": "Littleton :", "license": "Public Domain", "url": "https://static.case.law/"}
Date Created: 2024-08-24T03:29:51.129683

Appeal of Automatic Sprinkler Company of America.
    Docket No. 4987.
    Decided November 12, 1926.
    
      Irving Smith, Jr., Esq., for the petitioner.
    
      Thomas P. Dudley, Jr., Esq., for the Commissioner.
   Littleton :

This is an appeal from the determination of deficiencies for the years 1918 and 1919 in the amounts of $32,802.85 and $7,800.80, respectively, of which amounts approximately $2,100 is in dispute.

The controversy arises from the reduction by the Commissioner from $50,000 to $25,000 of invested capital, representing alleged value of patents and license agreements.

FINDINGS OF FACT.

The taxpayer is a Delaware corporation with principal office in New York City. During the taxable years it was affiliated with the Sypho-Chemical Sprinkler Corporation. On February 6, 1916, the Sypho-Chemical Sprinkler Corporation acquired for $200,000 par value of its capital stock certain patents and license agreements covering a certain automatic fire extinguishment system, which patents and license agreements had an actual cash value at the time acquired for stock of $50,000.

Judgment will he entered for the petitioner upon the issue raised on 15 days’ notice, under Rule 50.