COMMISSIONER V. DUBERSTEIN 363 US 278 (TAX)

1. Determination in each individual case as to whether the transaction in question was a "gift" must be based ultimately on the application of the fact-finding tribunal's experience with the mainsprings of human conduct to the totality of the facts in the case; and appellate review of the conclusion reached by the fact-finding tribunal must be quite restricted.
2. Duberstien, an individual taxpayer, gave to a business corporation, upon request, the names of potential customers. The information proved valuable, and the corporation reciprocates by giving a Cadillac automobile, charging the cost thereof as business expense on its own corporate income tax return. The Tax Court concluded that the car was not a "gift" excludable from income under the Internal Revenue Code. The Court determined that Duberstein's car was not a gift because it was given to him either as compensation for the customer references he gave to Berman or to encourage Duberstein to give more references in the future.
3. Stanton, upon resigning as comptroller of a church corporation and as president of its wholly-owned subsidiary created to manage its extensive real estate holdings, was given "a gratuity" of $20,000 "in appreciation of" his past services. The Commissioner assessed an income-tax deficiency against him for failure to include this amount in hsi gross income. Stanton paid deficiency and sued in a Federal Dictrict Court for a refund. The trial judge, sitting without a jury, made the simple finding that the payment was a "gift" and entered judgment for Stanton. The Court of Appeals reversed.