Brockman Oil Well Cementing Co. v. Commissioner
United States Tax Court
Early in 1939 one of petitioner's stockholders desired to retire from the business and the other stockholders were willing. Petitioner acquired his 12 1/2 shares of stock by distributing to him a ratable portion of the net assets of the corporation and the stock was carried as treasury stock.
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Early in 1939 one of petitioner's stockholders desired to retire from the business and the other stockholders were willing. Petitioner acquired his 12 1/2 shares of stock by distributing to him a ratable portion of the net assets of the corporation and the stock was carried as treasury stock. The business of petitioner prospered and later in the year petitioner, being in need of additional capital, borrowed from one of its stockholders in excess of $ 30,000, and gave its notes. Not long thereafter the 12 1/2 shares of stock which had been acquired from the retiring stockholder were issued to…
1Opinion of the Court
OPINION.
Black, Judge:
The Commissioner has determined a deficiency of $801.50 in petitioner’s income tax for its fiscal year ended April 30, 1940. The deficiency results from several adjustments made by the Commissioner in the income tax return filed by petitioner for the period in question. The only one of these adjustments which petitioner contests is adjustment (a), which consisted of adding $6,225 as capital gains to the net income reported by petitioner on its return. The Commissioner explained this adjustment in his deficiency notice as follows :(a) It has been found that you made a…
2Cited by23 opinions
- Cluett, Peabody & Co. v. CommissionerUnited States Tax Court · 1944
- Commissioner of Internal Revenue v. Landers CorpCourt of Appeals for the Sixth Circuit · 1954
- Commissioner of Internal Revenue v. H. W. Porter & Co., Inc.Court of Appeals for the Third Circuit · 1951
- Rollins Burdick Hunter Co. v. CommissionerUnited States Tax Court · 1947
- Batten, Barton, Durstine & Osborn, Inc. v. CommissionerUnited States Tax Court · 1947
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