Court Opinion

ID: 4475875
Source: CourtListenerOpinion
Date Created: 2020-01-16 21:11:44.087982+00
Date Added: 2024-06-11T15:04:27.291316
License: Public Domain

TueNee, /., dissenting: Passing over the question still lurking in the background as to whether there has been judicial legislation in Pacific Coast Biscuit Co., 32 B. T. A. 39, and other cases which have followed, to the effect that expenditures incurred in connection with the complete liquidation of a corporation are to be regarded as ordinary and necessary expenses, within the meaning of section 23 (a) of the Code, it is my view that there should be no question about the expenditures in the instant case. They were not expenditures incurred in connection with the complete liquidation of a corporation, but were expenditures incident to the reorganization of a continuing corporation and, under the long line of cases cited in the majority opinion, are capital expenditures which are not deductible and in no way partake of the character of expenditures normally made by the corporation in the ordinary course of conducting the business for which it was originally organized and now reorganized. Black, J., agrees with this dissent.