C. I. R. v. BRITISH MOTOR CAR DISTRIBUTORS, LTD.

No. 16432.

278 F.2d 392 (1960)

COMMISSIONER OF INTERNAL REVENUE, Petitioner, v. BRITISH MOTOR CAR DISTRIBUTORS, LTD., a corporation, Respondent.

United States Court of Appeals Ninth Circuit.

March 31, 1960.


Attorney(s) appearing for the Case

Howard A. Heffron, Acting Asst. Atty. Gen., Lee A. Jackson, A. F. Prescott, Kenneth E. Levin, Attys., Dept. of Justice, Washington, D. C., for petitioner.

Frederic T. Leo, San Francisco, Cal., Clyde C. Sherwood, Mountain Ranch, Cal., for the respondent.

Gibson, Dunn & Crutcher, F. Daniel Frost, John J. Waller, Norman B. Barker, Los Angeles, Cal., amicus curiae.

Before POPE, HAMLIN and MERRILL, Circuit Judges.


MERRILL, Circuit Judge.

The taxpayer corporation incurred losses while engaged in the business of selling home appliances. It disposed of all its assets and the corporate shares were then sold to new owners, who used the corporation to operate a previously going automobile business. The question here presented is whether the taxpayer is entitled to carry over the losses incurred in the old business, where it is clear that...

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