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CONSUMERS POWER COMPANY v. UNITED STATES

Nos. 19916, 19917.

427 F.2d 78 (1970)

CONSUMERS POWER COMPANY, Plaintiff-Appellee, v. UNITED STATES of America, Defendant-Appellant. CONSUMERS POWER COMPANY, Plaintiff, Cross-Appellant, v. UNITED STATES of America, Defendant, Cross-Appellee.

United States Court of Appeals, Sixth Circuit.

June 5, 1970.

Attorney(s) appearing for the Case

Richard W. Perkins, Dept. of Justice, Washington, D. C., for the United States; Johnnie M. Walters, Asst. Atty. Gen., Lee A. Jackson, William A. Friedlander, Attys., Dept. of Justice, Washington, D. C., on the brief.

Clifford H. Domke and William O. Allen, Jackson, Mich., on the brief for Consumers Power Co.

Before COMBS and BROOKS, Circuit Judges, and O'SULLIVAN, Senior Circuit Judge.

BROOKS, Circuit Judge.

This appeal involves questions relating to the federal income tax liability of the plaintiff-appellee, Consumers Power Company. Consumers brought suit to recover a portion of the income taxes it paid for the taxable years 1954 through 1957. Two issues are presented on review. First, Consumers argues that it should have been able to deduct from its gross income as ordinary and necessary business expenses payments made to the Electric Companies...

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