Task: songer_weightev

What follows is an opinion from a United States Court of Appeals. You will be asked a question pertaining to issues that may appear in any civil law cases including civil government, civil private, and diversity cases. The issue is: "Did the factual interpretation by the court or its conclusions (e.g., regarding the weight of evidence or the sufficiency of evidence) favor the appellant?" This includes discussions of whether the litigant met the burden of proof. Answer the question based on the directionality of the appeals court decision. If the court discussed the issue in its opinion and answered the related question in the affirmative, answer "Yes". If the issue was discussed and the opinion answered the question negatively, answer "No". If the opinion considered the question but gave a mixed answer, supporting the respondent in part and supporting the appellant in part, answer "Mixed answer". If the opinion does not discuss the issue, or notes that a particular issue was raised by one of the litigants but the court dismissed the issue as frivolous or trivial or not worthy of discussion for some other reason, answer "Issue not discussed". If the opinion considered the question but gave a "mixed" answer, supporting the respondent in part and supporting the appellant in part (or if two issues treated separately by the court both fell within the area covered by one question and the court answered one question affirmatively and one negatively), answer "Mixed answer". If the opinion either did not consider or discuss the issue at all or if the opinion indicates that this issue was not worthy of consideration by the court of appeals even though it was discussed by the lower court or was raised in one of the briefs, answer "Issue not discussed".

JONES, Circuit Judge.
The taxpayer, H. B. Snively, purchased all of the stock of a corporation which owned and operated a citrus grove. Thereafter he liquidated the corporation and the grove was transferred to the taxpayer. Upon the completion of liquidation the taxpayer conveyed the grove property to his son. It was held that the proceeds received by the taxpayer from the sale of fruit from the grove prior to liquidation were income to the corporation for the purpose of income and excess profits taxes. Transferee liability of the taxpayer was asserted by the Commissioner and his determination was upheld by the Tax Court. Snively v. Commissioner, 19 T.C. 850. This Court affirmed. Snively v. Commissioner, 5th Cir. 1955, 219 F.2d 266. The liability so determined was discharged by the taxpayer’s payment of the tax and interest in 1954. In his return for that year the taxpayer claimed a deduction for the amount paid by him The Commissioner allowed the deduction to the extent of the interest but disallowed as to the amount of the tax. The resulting deficiency was paid by the taxpayer, a claim for refund was filed, and thereafter suit was brought for the recovery of an alleged over-payment. The district court regarded W. D. Haden Co. v. Commissioner, 5th Cir. 1948, 165 F.2d 588, as controlling and entered an order dismissing the action on the ground that the complaint did not state a claim upon which relief could be granted. On appeal the taxpayer’s single specification of error is that the district court erroneously determined that the payment of the tax deficiency of the corporation constituted a capital expenditure rather than an ordinary loss in a transaction entered into for profit.
The taxpayer would distinguish the Haden case upon the ground, among others, that in Haden there was a tax-free exchange and merger while here there was a corporate liquidation and distribution pursuant thereto. There is no difference, we think, between the tax incident here, in a tax-free liquidation, and in Haden, where there was a tax-free exchange and merger. The district court held that the tax was not deductible as a business expense because it accrued from fruit sold from the groves. We agree. The tax was a liability of the corporation and the moneys paid in discharging that liability were part of the consideration for the property and required to be capitalized.
The final contention is that the payment should be allowed as an ordinary loss in a transaction entered into for profit under 26 U.S.C.A. (I.R.C.1939) § 23(e) (2), 26 U.S.C.A. (I.R.C.1954) § 165(c). To dispose of this contention it seems that no more need be said than that the property was not acquired in a transaction entered into for profit. The taxpayer acquired the grove with the intention of making a gift of it to his son and this he did soon after getting title to it.
We find no error in the district court’s decision. Its judgment is
Affirmed.

Question: Did the factual interpretation by the court or its conclusions (e.g., regarding the weight of evidence or the sufficiency of evidence) favor the appellant?
A. No
B. Yes
C. Mixed answer
D. Issue not discussed
Answer:

Answer: D