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HOUSTON FARMS DEVELOPMENT CO. v. UNITED STATES

No. 10304.

131 F.2d 577 (1942)

HOUSTON FARMS DEVELOPMENT CO. v. UNITED STATES.

Circuit Court of Appeals, Fifth Circuit.

Rehearing Denied January 27, 1943.

Attorney(s) appearing for the Case

L. E. Blankenbecker, of Houston, Tex., for appellant.

Earl C. Crouter and Sewall Key, Sp. Assts. to Atty. Gen., Samuel O. Clark, Jr., Asst. Atty. Gen., and Brian S. Odem, Asst. U. S. Atty., of Houston, Tex., for appellee.

Before SIBLEY, HUTCHESON, and HOLMES, Circuit Judges.

Rehearing Denied January 27, 1943. See 132 F.2d 861.

SIBLEY, Circuit Judge.

The appellant sued in the district court to recover income taxes illegally exacted for the year 1935. The court found against its main contention, and this appeal was taken.

The question is whether certain payments made to the taxpayer by Sun Oil Company in a negotiation for and under oil leases were in the nature of bonuses, against which...

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