Kilby Steel Co. v. Commissioner
United States Board of Tax Appeals
Where a corporation is party to a contract with creditor banks forbidding, without written permission of the banks, the declaration of dividends, such corporation being in dire financial straits, which fact is well known to the banks, held, it is not necessary, as a prerequisite to taking credit under section 26(c)(1) of the Revenue Act of 1936, that the corporation request and obtain written refusal of permission to pay dividends.
1Opinion of the Court
KILBY STEEL COMPANY, PETITIONER, v. COMMISSIONER OF INTERNAL REVENUE, RESPONDENT.
Kilby Steel Co. v. Commissioner
Docket No. 99528.
United States Board of Tax Appeals
41 B.T.A. 1237; 1940 BTA LEXIS 1081;
May 24, 1940, Promulgated
Where a corporation is party to a contract with creditor banks forbidding, without written permission of the banks, the declaration of dividends, such corporation being in dire financial straits, which fact is well known to the banks, held, it is not necessary, as a prerequisite to taking credit under section 26(c)(1) of the Revenue Act of 1936, that the corporation…
2Cases cited1 opinion
- Kilby Steel Co. v. CommissionerUnited States Board of Tax Appeals · 1940