CANAVERAL INTERNATIONAL CORP v. COMMISSIONER

Docket No. 2576-69.

61 T.C. 520 (1974)

CANAVERAL INTERNATIONAL CORPORATION, PETITIONER v. COMMISSIONER OF INTERNAL REVENUE, RESPONDENT.

United States Tax Court.

Filed January 29, 1974.


Attorney(s) appearing for the Case

Carl F. Bauersfeld, Robert J. Tyrrell, and Robert Ash, for the petitioner.

Marlene Gross, for the respondent.


FEATHERSTON, Judge:

Respondent determined a deficiency in petitioner's Federal income tax and that of its affiliated companies for the taxable year ended September 30, 1966, in the amount of $159,431.48. By stipulation the parties have settled most of the issues outlined in the notice of deficiency, leaving for decision the following questions:

(1) Whether the principal purpose motivating petitioner's acquisition of the stock of Norango, Inc., was the...

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