Legal Opinion

Lehigh Structural Steel Co. v. Commissioner

United States Board of Tax Appeals

Decided May 6, 1941No. Docket No. 102565Published

Petitioner's amended charter provided for sinking fund for retirement of preferred stock, whereby percentage of net earnings of taxable year after payment of preferred dividends was to be set aside before any other dividends could be paid. The charter provision was set out in preferred stock certificates. Held, petitioner is not entitled to credit of such amount under section 26(c)(1), Revenue Act of 1936; charter provision held not a contract within meaning of act.

1Opinion of the Court

LEHIGH STRUCTURAL STEEL COMPANY, PETITIONER, v. COMMISSIONER OF INTERNAL REVENUE, RESPONDENT.

Lehigh Structural Steel Co. v. Commissioner

Docket No. 102565.

United States Board of Tax Appeals

44 B.T.A. 422; 1941 BTA LEXIS 1337;

May 6, 1941, Promulgated

Petitioner's amended charter provided for sinking fund for retirement of preferred stock, whereby percentage of net earnings of taxable year after payment of preferred dividends was to be set aside before any other dividends could be paid. The charter provision was set out in preferred stock certificates. Held, petitioner is not entitled to credit of…

2Cases cited1 opinion

  1. Lehigh Structural Steel Co. v. CommissionerUnited States Board of Tax Appeals · 1941

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