Lakeland Grocery Co. v. Commissioner
Board of Tax Appeals
36 B.T.A. 289 (1937)
- Written by Joanne Turner, JD
Facts
Lakeland Grocery Co. (Lakeland) (plaintiff) was forced into receivership by its creditors in December 1930. In March 1933, Lakeland filed for bankruptcy. To allow Lakeland to remain in business, its creditors agreed to forgive $104,710.16 of debt in return for a payment of $15,472.61. That left Lakeland with net assets of $39,596.93 free and clear of any claims by creditors. The commissioner of Internal Revenue (defendant) assessed Lakeland for additional income of $89,237.55, the difference between $104,710.16 (the amount of debt forgiven) and $15,472.61 (the amount paid to the creditors). Lakeland contended that no income resulted from the settlement with its creditors. The commissioner later conceded that the assessment should have been for only $39,596.93, Lakeland’s total net assets after the settlement with the creditors.
Rule of Law
Issue
Holding and Reasoning (Harron, J.)
Concurrence (Sternhagen, J.)
Dissent (Morris, J.)
What to do next…
Here's why 810,000 law students have relied on our case briefs:
- Written by law professors and practitioners, not other law students. 46,300 briefs, keyed to 988 casebooks. Top-notch customer support.
- The right amount of information, includes the facts, issues, rule of law, holding and reasoning, and any concurrences and dissents.
- Access in your classes, works on your mobile and tablet. Massive library of related video lessons and high quality multiple-choice questions.
- Easy to use, uniform format for every case brief. Written in plain English, not in legalese. Our briefs summarize and simplify; they don’t just repeat the court’s language.
