GUANTANAMO & WESTERN RAILROAD CO. v. COMMISSIONER

Docket No. 59860.

31 T.C. 842 (1959)

GUANTANAMO & WESTERN RAILROAD COMPANY, PETITIONER, v. COMMISSIONER OF INTERNAL REVENUE, RESPONDENT.

United States Tax Court.

Filed January 26, 1959.


Attorney(s) appearing for the Case

Richard E. Garley, Esq., and John J. Hayes, Esq., for the petitioner.

Anthony S. Del Giudice, Esq., and Norman L. Rapkin, Esq., for the respondent.


ARUNDELL, Judge:

The respondent determined deficiencies in income tax for the taxable years ended June 30, 1949, June 30, 1950, and June 30, 1951, in the respective amounts of $35,891.27, $32,354.72, and $44,932.56.

The issues remaining for our decision are:

1. Whether the respondent erred in disallowing deductions for interest expense under the provisions of section 23(b) of the Internal Revenue Code of 1939 of $120,000, $90,000, and $90,000...

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