J. Gordon Turnbull, Inc. v. Commissioner of Internal Revenue

AINSWORTH, Circuit Judge:

Taxpayer petitions for review of an adverse decision of the Tax Court. The issue is whether taxpayer was availed of for the purpose of permitting earnings or profits to accumulate beyond the reasonable needs of its business (as provided by Section 102 of the Internal Revenue Code of 1939), thereby avoiding the imposition of the surtax on its shareholders. The taxable years involved are those for the years ended November 30, 1952, November 30, 1953 and the period December 1, 1953 through February 4 1954.

J. Gordon Turnbull, Inc., taxpayer, (JGT), was organized under the…