CHANROBLES VIRTUAL LAW LIBRARY
US LAWS, STATUTES and CODES : Chan Robles Virtual Law Library USA Supreme Court Decisions | Resolutions : Chan Robles Virtual Law Library

ChanRobles™ Virtual Law Library™ | chanrobles.com™   
Main Index Repository of Laws, Statutes and Codes Latest Philippine Supreme Court Decisions Chan Robles Virtual Law Library Latest Legal Updates Philippine Legal Resources Significant Philippine Legal Resources Worldwide Legal Resources Philippine Supreme Court Decisions United States Legal Resources United States Supreme Court Jurisprudence ChanRobles LawTube - Social Network

ChanRobles Internet Bar Review : www.chanroblesbar.com DebtKollect Company, Inc. - Debt Collection Firm Intellectual Property Division - Chan Robles Law Firm

Philippine Supreme Court DecisionsChanRobles On-Line Bar Review

google search for chanrobles.comSearch for www.chanrobles.com


PLANTERS COTTON OIL CO., INC. V. HOPKINS, 286 U. S. 332 (1932)

Subscribe to Cases that cite 286 U. S. 332 RSS feed for this section

U.S. Supreme Court

Planters Cotton Oil Co., Inc. v. Hopkins, 286 U.S. 332 (1932)

Planters Cotton Oil Co., Inc. v. Hopkins

No. 672

Argued April 20, 1932

Decided May 16, 1932

286 U.S. 332

CERTIORARI TO THE CIRCUIT COURT OF APPEALS

FOR THE FIFTH CIRCUIT

Syllabus

The owner of substantially all of the stock of two joint stock associations caused their assets to be transferred to three corporations which he formed for carrying on the business and of which he owned substantially all the shares. Held that, in a consolidated income tax return of all the companies, net losses suffered by the joint stock associations during the year preceding the affiliation were not deductible. Woolford Realty Co. v. Rose, ante, p. 286 U. S. 319. P. 333.

53 F.2d 825 affirmed.

Certiorari, 285 U.S. 533, to review the affirmance of a judgment, 47 F.2d 659, dismissing the petition in an action to recover an alleged overpayment of income taxes. chanroblesvirtualawlibrary

Page 286 U. S. 333

MR. JUSTICE CARDOZO delivered the opinion of the Court.

Three corporations, Planters Cotton Oil Co., Inc., Waxahachie, Planters' Cotton Oil Co., Inc., Ennis, and Farmers' Gins, Inc., were organized under the laws of Texas in August, and September, 1924. Two joint-stock associations, Planters' Cotton Oil Company, Waxahachie, and Planters' Cotton Oil Company, Ennis, which had been organized in earlier years, retained their separate existence. One man, H. N. Chapman, was the owner of 98 percent of the shares of the unincorporated associations. He caused the assets of those associations, or substantially all of them, to be transferred to the newly organized corporations, and received in return substantially all the shares of stock.

For the fiscal year ending June 30, 1925, the three corporations and the two joint-stock associations filed a consolidated income tax return wherein the corporations, which had earned a net income of $147,636.25, claimed a deduction of $78,399.25 for loss suffered by the associations during the year preceding the affiliation. The deduction was disallowed, and suit was brought by the corporation and the associations for the refund of the tax to the extent of the overpayment claimed. The District Court dismissed the petition, 47 F.2d 659, the Court of Appeals affirmed, 53 F.2d 825, and, by certiorari, the case is here.

The controversy is ruled by our judgment in Woolford Realty Co., Inc. v. Rose, ante, p. 286 U. S. 319, unless the fact that, in this case, one shareholder, Chapman, was the owner of substantially all the shares of the five affiliated companies supplies an essential element of difference. We think it does not. Chapman was free, if he desired, to continue to do business in an unincorporated form. Preferring the chanroblesvirtualawlibrary

Page 286 U. S. 334

privileges of corporate organization, he brought into being three corporations and did business through them. These corporations are not identical with the unincorporated associations to whose principal assets they have succeeded, and the losses of the associations suffered in an earlier year are not the losses of the corporations that came into existence afterwards.

The judgment is

Affirmed.





Back
ChanRobles™ LawTube

google search for chanrobles.com Search for www.chanrobles.com


Supreme Court Decisions Philippine Supreme Court DecisionsUS Supreme Court Decisions



www.chanrobles.us




QUICK SEARCH

cralaw

Browse By ->> Volume


cralaw

Browse By ->> Year


cralaw

  Copyright © ChanRobles Publishing Company | Disclaimer | E-mail Restrictions
ChanRobles™ Virtual Law Library | chanrobles.com™
 
RED