Court Opinion

ID: 9449083
Source: CourtListenerOpinion
Date Created: 2023-08-03 23:55:29.072398+00
Date Added: 2024-06-11T17:31:41.177320
License: Public Domain

On Petition for Rehearing.
PER CURIAM.
The petition for rehearing and reply thereto establish more clearly than was heretofore apparent, that at the time the contract for the purchase of Sommers' stock was executed there was no expressed intention one way or the other as to allocation and tax consequences. It follows that the petitioner failed to sustain its burden of proving that, notwithstanding the lack of any recital to that effect in the agreement, the parties intended to allocate consideration to the covenant.
Accordingly we are now of the view that there is no need of remanding the matter to the tax court for a rehearing on the question of intention. The opinion is therefore modified to provide, in lieu of a remand, that the decision of the tax court be affirmed. In other respects the opinion stands, as a means of indicating our disagreement with certain views expressed in the decision of the tax court and the erroneous legal theory upon which it relied, which views and theory, however, under the circumstances did not affect the correct disposition of the case.
The petition for rehearing is denied.