Opinion · Court of Appeals for the Second Circuit

Jack M. Chesbro, Carl Silverstein, Morris Silverstein, Smiling Jack Chesbro, Inc. v. Commissioner of Internal Revenue

225 F.2d 674

Type
Opinion
Court
Court of Appeals for the Second Circuit
Jurisdiction
Federal
Date
1955-08-09
Topic
bankruptcy

PER CURIAM. We adopt the opinion of the Tax Court. 21 T.C. 123. We add only a few words addressed to the appellants’ contention that the Pax Court erred in failing to apply the holding of this court announced in Cohan v. Commissioner, 39 F.2d 540. The principal similarity of that case to this lies in the fact that in neither did the taxpayer have books of account to support the allowance. of claimed deductions.

Citator

UpLaw has not yet analyzed Jack M. Chesbro, Carl Silverstein, Morris Silverstein, Smiling Jack Chesbro, Inc. v. Commissioner of Internal Revenue. The absence of a flag is not a finding that it is good law.

Authority status
pending
Cited by
26 opinions
CHESBRO v. COMMISSIONER OF INTERNAL REVENUE,225 F.2d 674(2nd Cir. 1955)
Jack M. CHESBRO, Carl Silverstein, Morris Silverstein, Smiling Jack
Chesbro, Inc., Petitioners-Appellants, v. COMMISSIONER OF INTERNAL
REVENUE, Respondent-Appellee.
Nos. 158-165, Dockets 23290-23297.
United States Court of Appeals, Second Circuit.
Argued June 15, 1955.
Decided August 9, 1955.
Harold Fein, Buffalo, N.Y., for petitioners-appellants.

H. Brian Holland, Asst. Atty. Gen., Ellis N. Slack, A.F. Prescott, S.D. Hanson, Special Assts. to the Atty. Gen., for respondent-appellee.
Before CLARK, MEDINA and HINCKS, Circuit Judges.
PER CURIAM.
We adopt the opinion of the Tax Court.21 T.C. 123. We add only a few words addressed to the appellants' contention that the Tax Court erred in failing to apply the holding of this court announced in Cohan v. Commissioner,39 F.2d 540. The principal similarity of that case to this lies in the fact that in neither did the taxpayer have books of account to support the allowance of claimed deductions. But in Cohan, the Tax Court was reversed only because it found that the taxpayer had made some allowable expenditures, yet gave him credit for none. That holding is not applicable here. To the extent that the Tax Court found credible evidence to support deductible expenditures, it allowed them, even in the absence of supporting books of account. The evidence offered to prove further expenditures was not such that the Tax Court was obliged to accept it, since it depended on the credibility of witnesses — largely on the credibility of the taxpayers themselves who concededly had long engaged in illegal business activities. That a witness had engaged in practices violative of federal price controls is a factor properly to be considered in judging of his credibility. Nothing in the Cohan case holds to the contrary. Here, the decision below was consistent with findings which on the evidence were well within the province of the trier.

Affirmed.