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FIRST KENTUCKY COMPANY v. GRAY

No. 14595.

309 F.2d 845 (1962)

FIRST KENTUCKY COMPANY, Plaintiff-Appellant, v. William M. GRAY, District Director of Internal Revenue for Kentucky, Defendant-Appellee.

United States Court of Appeals Sixth Circuit.

November 21, 1962.

Attorney(s) appearing for the Case

James W. Stites, Jr., Louisville, Ky. (James W. Stites, Louisville, Ky., on the brief; Stites, Peabody & Helm, Louisville, Ky., of counsel), for appellant.

John A. Bailey, Dept. of Justice, Washington, D. C. (Louis F. Oberdorfer, Asst. Atty. Gen., Lee A. Jackson, Meyer Rothwacks, Attys., Dept. of Justice, Washington, D. C., William B. Jones, U. S. Atty., on the brief), for appellee.

Before O'SULLIVAN, Circuit Judge, and BOYD and THORNTON, District Judges.

BOYD, District Judge.

The appellant is a Kentucky corporation engaged in the business of making investments. It instituted this suit in the District Court for refund of $21,007.98, income taxes paid under protest, plus interest. The payment of these taxes was made by appellant as a result of a deficiency assessment for the year 1954 by the Commissioner of Internal Revenue on the theory that accrued interest in default was part of the sale price of railroad bonds sold...

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