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UNITED STATES v. HASKEL ENGINEERING & SUPPLY COMPANY

No. 21104.

380 F.2d 786 (1967)

UNITED STATES of America, Appellant, v. HASKEL ENGINEERING & SUPPLY COMPANY, Appellee.

United States Court of Appeals Ninth Circuit.

June 21, 1967.

Attorney(s) appearing for the Case

Mitchell Rogovin, Asst. Atty. Gen., Richard C. Pugh, Acting Asst. Atty. Gen., Lee A. Jackson, Harold C. Wilkenfeld, Solomon L. Warhaftig, Attys., Tax Div., Dept. of Justice, Washington, D. C., John K. Van de Kamp, William M. Byrne, Jr., U. S. Attys., Charles H. Magnuson, Asst. U. S. Atty., Los Angeles, Cal., for appellant.

Walter S. Weiss, Richard W. Craigo, Goodson & Hannam, Los Angeles, Cal., for appellee.

Before BARNES, HAMLEY and DUNIWAY, Circuit Judges.

BARNES, Circuit Judge.

This tax case concerns certain deductions claimed by appellee for the taxable years 1957, 1958 and 1959. From 1946 to 1952 Richard Hayman and Don Driskel operated a partnership under the name of Haskel Engineering & Supply Company. Hayman had a sixty per cent interest and Driskel a forty per cent interest. In 1952 the business was converted into corporate form, the corporation involved here issuing 1500 shares of stock and $64,000 in debenture...

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