CAPRI, INC. v. COMMISSIONER

Docket No. 6769-71.

65 T.C. 162 (1975)

CAPRI, INC., PETITIONER v. COMMISSIONER OF INTERNAL REVENUE, RESPONDENT.

United States Tax Court.

Filed October 28, 1975.


Attorney(s) appearing for the Case

Peter Meloy, John R. Kline, and David N. Niklas, for the petitioner.

David R. Brennan, for the respondent.


GOFFE, Judge:

The Commissioner determined a deficiency of $62,642.28 in petitioner's Federal income tax for the taxable year ended June 30, 1970. The issues to be decided are:

(1) Whether petitioner is precluded from deducting on a consolidated return net operating losses of its subsidiary because it acquired control for the principal purpose of avoiding tax under section 269(a),1 I.R.C. 1954, or because there was a substantial...

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