Carso Paper Co. v. Commissioner

APPEAL OF CARSO PAPER CO., INC.

Carso Paper Co. v. Commissioner

Docket No. 4930.

United States Board of Tax Appeals

3 B.T.A. 28; 1925 BTA LEXIS 2072;

November 12, 1925, Decided Submitted October 13, 1925.

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William M. Smith, Esq., for the taxpayer.

F. O. Graves, Esq., for the Commissioner.

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Before SMITH, JAMES, LITTLETON, and TRUSSELL.

This appeal is from the determination of a deficiency in income and profits tax for the year 1920 in the amount of $485.60. The point in issue is the right of the taxpayer to deduct from gross income, in its income and profits-tax return for the year 1920, $1,000 paid by the taxpayer toward the establishment of a hospital in the village of Dansville, N.Y.

FINDINGS OF FACT.

The taxpayer is a Massachusetts corporation with its principal office at Dansville, N.Y. It is engaged in the manufacture and sale of paper. It employs labor at Dansville. In 1920 it contributed $1,000 toward the establishment of a hospital in the city or village in which its principal plant was located and deducted the amount of the contribution from gross income in its income-tax return for 1920. The deduction was disallowed by the Commissioner.

DECISION.

The determination of the Commissioner is approved.