Saginaw & Manistee Lumber Co. v. Commissioner

*786OPINION.

Van Fossan:

The petitioner contends that the amended mortgage indenture and other agreements among the several interested parties, as interpreted and carried out by the parties, constituted an “agreement expressly dealing with the disposition oí earnings and profits of the taxable year”, as provided by section 26 (c) (2) of the Revenue Act of 1936,1 citing G. B. R. Oil Corporation, 40 B. T. A. 738, and other cases. On this premise it is argued that all of petitioner’s receipts were required by contract to be used in payment of debts incurred prior to May 1, 1936. With greater vigor it…