L. HAND, Circuit Judge.
The question upon this appeal is whether the taxpayer shall be allowed to deduct a payment of $65,000, made to settle a threatened law suit, on the theory that it was "an ordinary and necessary expense" of "carrying on" its "business", (§ 23(a) (1) of the Revenue Act of 1938, 26 U.S.C. A. Int.Rev.Code, § 23(a) (1)); or whether it can use the payment only to increase the "basis" of a gain or loss. An incidental and subsidiary question...
Let's get started
Welcome to the leading source of independent legal reporting
Sign on now to see your case.
Or view more than 10 million decisions and orders.
- Updated daily.
- Uncompromising quality.
- Complete, Accurate, Current.