HIPPODROME OLDSMOBILE, INC. v. UNITED STATES

No. 72-1375.

474 F.2d 959 (1973)

HIPPODROME OLDSMOBILE, INC., Plaintiff-Appellee, v. UNITED STATES of America, Defendant-Appellant.

United States Court of Appeals, Sixth Circuit.

Decided February 27, 1973.


Attorney(s) appearing for the Case

Louis A. Bradbury, Atty., Tax Div., Dept. of Justice, Washington, D. C., for defendant-appellant; Scott P. Crampton, Asst. Atty. Gen., Meyer Rothwacks, Daniel B. Rosenbaum, Attys., Tax Div., Dept. of Justice, Washington, D. C., on brief; Charles H. Anderson, U. S. Atty., Nashville, Tenn., of counsel.

W. W. Berry, Nashville, Tenn., for plaintiff-appellee; James H. Cheek, III, Bass, Berry & Sims, Nashville, Tenn., on brief.

Before EDWARDS and LIVELY, Circuit Judges, and McALLISTER, Senior Circuit Judge.


EDWARDS, Circuit Judge.

This case presents the question as to whether under a 1962 amendment to the Internal Revenue Code a corporate taxpayer may deduct as ordinary and necessary business expenses the depreciation and expenses of a pleasure boat, when concededly the company customers entertained thereon were not subjected to any specific exposure to taxpayer's products or suggestion that they buy them while being thus entertained.

The District Judge who heard...

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