Case Name: Chicago Warehouse Lumber Co., Petitioner, v. Commissioner of Internal Revenue, Respondent
Court: United States Board of Tax Appeals
Jurisdiction: United States
Decision Date: 1929-07-24
Citations: 16 B.T.A. 1416
Docket Number: Docket No. 21427
Parties: Chicago Warehouse Lumber Co., Petitioner, v. Commissioner of Internal Revenue, Respondent.
Judges: 
Reporter: Reports of the United States Board of Tax Appeals
Volume: 16
Pages: 1416–1418

Head Matter:
Chicago Warehouse Lumber Co., Petitioner, v. Commissioner of Internal Revenue, Respondent.
Docket No. 21427.
Promulgated July 24, 1929.
Eugene Bernstein, Esq., and Albert E. Gordon, Esq., for the petitioner.
Edward O. Lake, Esq., for the respondent.

Opinion:
OPINION.
Siefkin :
The petitioner, in order to justify the deduction of $4,800 in 1922, relies upon an oral agreement or understanding in 1922 that such action would be taken. It is clear, however, that corporate ación was not taken until 1923 and, consequently, no liability to pay accrued to the petitioner until that year. See Edward S. Jones et al., 6 B. T. A. 1048. It follows that the action of the respondent in disallowing the deduction in 1922 must be approved.
Judgment will be entered for the respondent.