Appeal of CARSO PAPER CO., INC.

Appeal of CARSO PAPER CO., INC. Docket No. 4930. Submitted October 13, 1925. Decided November 12, 1925. William M. Smith, Esq., for the taxpayer. F. O. Graves, Esq., for the Commissioner. Before Smith, James, Littlf/ton, 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. [MAJORITY] DECISION. The determination of the Commissioner is approved.