HELVERING v. SCHINE CHAIN THEATRES

No. 328.

121 F.2d 948 (1941)

HELVERING, Commissioner of Internal Revenue, v. SCHINE CHAIN THEATRES, Inc.

Circuit Court of Appeals, Second Circuit.

July 21, 1941.


Attorney(s) appearing for the Case

Samuel O. Clark, Jr., Asst. Atty. Gen., and Sewall Key and Harry Marselli, Sp. Assts. to Atty. Gen., for petitioner.

John E. Hughes, of Chicago, Ill., and Willard S. McKay, of New York City, for respondent.

Before L. HAND, CHASE, and FRANK, Circuit Judges.


L. HAND, Circuit Judge.

This case comes up on a petition to review an order of the Board, expunging a deficiency in the taxpayer's income tax for the year 1933; the only question is whether the Commissioner was right in increasing the gross income by the sum of $629,805.91. The facts on which this depends are as follows. In August, 1929, the taxpayer was a holding company for some twelve corporations, all of which leased or subleased theatres to the Fox Metropolitan...

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