U.S. Court of Appeals for the D.C. Circuit, 1949

Palm Beach Trust Co. v. Commissioner of Internal Revenue

U.S. Court of Appeals for the D.C. Circuit · Decided April 18, 1949

174 F.2d 527; 84 U.S. App. D.C. 410; 37 A.F.T.R. (P-H) 1478; 1949 U.S. App. LEXIS 4393 (Federal Reporter, Second Series)

Counsel

Mr. B. H. Bartholow, of New York City, for petitioner., Mr. S. Dee Hanson, Sp. Asst. to the Atty. Gen., with whom Messrs. Ellis N. Slack and A. F. Prescott, Sp. Assts. to the Atty. Gen., of Washington, D. C., were of the brief, for respondent., Mr. Lee Anderson Jackson, Sp. Asst. to the Atty. Gen. and Mr. Charles Oliphant, Chief Counsel, Bureau of Internal Revenue, and Mr. John M. Morawski, Sp. Atty., Bureau of Internal Revenue, both of Washington, D. C., also entered appearances for respondent.

Cases that cite this one

2 later published cases cite this decision.

Del Commercial Properties, Inc. v. Commissioner (D.C. Cir. 2001)
Handley Motor Company, Inc. v. The United States (Court of Claims 1964)

This list shows which later cases cite this one. It does not say how they treated it, and no review of that has been done. Not a substitute for Shepard’s or KeyCite — verify before relying.

Opinion of the Court

PER CURIAM.

This is a petition for review of a decision of the Tax Court of the United States.1 We think that court was right in its ruling upon petitioner’s liability for the personal holding company surtax. Its decision in that respect is affirmed upon the opinion of Judge Opper. In respect to the delinquency penalty, however, we disagree. Petitioner company was originally organized prior to the imposition of the personal holding company surtax, and it had an original business purpose quite apart from tax considerations. There was a question debatable in good faith concerning the application to it of the statutory exceptions. While those considerations do not bear upon its liability for the tax, they do bear upon liability for penalties.2 The decision upon the penalties is, therefore, reversed.

Affirmed in part and reversed in part.

1947, Palm Beach Trust Co., 9 T.C. 3060.

Orient Investment & Finance Co. v. Commissioner of Internal Revenue, 1948, 83 U.S.App.D.O. 74, 366 F.2d 601, 3 L.R.A.2d 612, and eases there cited; Spies v. United States, 1943, 317 U.S. 492, 496, 63 S.Ct. 361, 87 L.Ed. 418.

Case-law data current through December 31, 2025. Source: CourtListener bulk data.