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GEORGE FREITAS DAIRY, INC. v. UNITED STATES

Civ. Nos. 73-3789, 73-3790.

407 F.Supp. 1395 (1976)

GEORGE FREITAS DAIRY, INC., Plaintiff, v. The UNITED STATES of America, Defendant. HENRY COSTA JR. DAIRY, INC., Plaintiff, v. The UNITED STATES of America, Defendant.

United States District Court, D. Hawaii.

January 23, 1976.

Attorney(s) appearing for the Case

William W. Saunders, Saunders & Morse, Honolulu, Hawaii, for plaintiffs.

Harold M. Fong, U. S. Atty., Honolulu, Hawaii, Robert Livingston, Dept. of Justice, Tax Div., Washington, D. C., for defendant.

OPINION

WONG, District Judge.

At all times mentioned herein, plaintiffs were corporations (unless otherwise indicated) engaged in the production of dairy products, including raw milk. On its federal income tax return for the calendar year 1967, plaintiff Henry Costa Jr. Dairy, Inc. (Costa), claimed and the Commissioner of Internal Revenue disallowed an alleged loss of $116,183.33 for cancellation of a milk-production contract. A similar loss claim for 1967...

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