WORLD AIRWAYS, INC. v. C. I. R.

No. 75-2176.

564 F.2d 886 (1977)

WORLD AIRWAYS, INC., and World Air Center, Inc., Petitioner-Appellants, v. COMMISSIONER OF INTERNAL REVENUE, Respondent-Appellee.

United States Court of Appeals, Ninth Circuit.

November 15, 1977.


Attorney(s) appearing for the Case

La Verne L. Dotson (argued) of Brobeck, Phleger & Harrison, San Francisco, Cal., for plaintiffs-appellants.

William A. Whitledge, Atty. (argued) of Dept. of Justice, Washington, D. C., for respondent-appellee.

Before LUMBARD, WRIGHT and ANDERSON, Circuit Judges.


J. BLAINE ANDERSON, Circuit Judge:

This is an appeal from a decision of the Tax Court, reported at 62 T.C. 786 (September 18, 1974), and involves two issues.

The first issue involves the question of when World Airways can deduct certain engine and airframe overhaul expenses. The Tax Court held that the only proper year to deduct these expenses was in the same year the overhaul and consequent expenses were actually incurred....

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