THIRD NATIONAL BANK IN NASHVILLE v. United States
Decision Date | 28 May 1970 |
Docket Number | No. 19741.,19741. |
Citation | 427 F.2d 343 |
Parties | THIRD NATIONAL BANK IN NASHVILLE, William F. Howard and Laurence B. Howard, Jr., Co-Executors of the Estate of Ellen F. Stempfel, Plaintiffs-Appellees, v. UNITED STATES of America, Defendant-Appellant. |
Court | U.S. Court of Appeals — Sixth Circuit |
Stuart A. Smith, Dept. of Justice, Washington, D. C., Johnnie M. Walters, Asst. Atty. Gen., Lee A. Jackson, Harry Baum, Attys., Dept. of Justice, Washington, D. C., on the brief; Charles H. Anderson, U. S. Atty., Nashville, Tenn., of counsel, for appellant.
William F. Howard, Nashville, Tenn., Boult, Hunt, Cummings & Conners, Nashville, Tenn., on the brief, for appellees.
Before WEICK and EDWARDS, Circuit Judges, and O'SULLIVAN, Senior Circuit Judge.
In this case the United States appeals from a decision of the United States District Court for the Middle District of Tennessee. In a careful opinion the United States District Judge held that legal fees arising out of an appraisal proceeding through which taxpayers'1 minority stockholding was appraised for purposes of a merger acquisition were ordinary and necessary business expenses and deductible under section 212 of the Internal Revenue Code of 1954. The District Judge relied largely upon Heller v. Commissioner of Internal Revenue, 2 T.C. 371 (1943), aff'd, 147 F.2d 376 (9th Cir.), cert. denied., 325 U.S. 868, 65 S.Ct. 1405, 89 L.Ed. 1987 (1945).
Since the decision of this case in the United States District Court, the United States Supreme Court has decided Woodward v. Commissioner, 397 U.S. 572, 90 S.Ct. 1302, 25 L.Ed.2d 577 (1970), and United States v. Hilton Hotels Corp., 397 U.S. 580, 90 S.Ct. 1307, 25 L.Ed.2d 585 (1970). In these two cases the Supreme Court effectively reversed the Heller case upon which the District Court had relied. The Supreme Court held:
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