American Air Liquide, Inc. and Subsidiaries - Page 4

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          perpetual licenses to exploit, outside the United States, certain           
          technical information developed (or to be developed) at LAC’s               
          research facility and certain improvements made (or to be made)             
          to certain patent rights licensed to LAC by L’Air.  On its tax              
          returns for the years in issue, petitioner characterized the                
          royalties received from L’Air as section 904(d)(1)(I) general               
          limitation income for foreign tax credit purposes.  On                      
          examination, respondent recharacterized the royalties as section            
          904(d)(1)(A) passive income.  The deficiencies are a result of              
          this recharacterization.                                                    
          A.  Whether Summary Judgment Is Appropriate                                 
               Summary judgment is intended to expedite litigation and                
          avoid unnecessary and expensive trials.  See Northern Ind. Pub.             
          Serv. Co. & Subs. v. Commissioner, 101 T.C. 294, 295 (1993);                
          Florida Peach Corp. v. Commissioner, 90 T.C. 678, 681 (1988);               
          Shiosaki v. Commissioner, 61 T.C. 861, 862 (1974).  Summary                 
          judgment is appropriate where there is no genuine issue as to any           
          material fact and a decision may be rendered as a matter of law.            
          See Rule 121(b); Sundstrand Corp. v. Commissioner, 98 T.C. 518,             
          520 (1992), affd. 17 F.3d 965 (7th Cir. 1994); Jacklin v.                   
          Commissioner, 79 T.C. 340, 344 (1982).  In deciding whether to              
          grant summary judgment, the Court must consider the factual                 
          materials and inferences drawn from them in the light most                  

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