Schmoll Fils Associated, Inc. v. Commissioner
United States Board of Tax Appeals
Nonmaturing debentures held to be evidences of indebtedness and interest paid thereon deductible.
1Dissent
Disney,
dissenting: I must dissent. Although feeling that the relation of debtor and creditor is lacking in the instant proceeding because of the lack of a definite time of maturity (Jewel Tea Co. v. United States, 90 Fed. (2d) 451), I shall discuss principally the fact that payment of interest is limited by being payable only from profits. In Commissioner v. O. P. P. Holding Corporation, 76 Fed. (2d) 11, the court laid down, I think, the sound distinction between a shareholder and a creditor as reflected in the difference between obligations being payable regardless of surplus, or payable…
2Cases cited8 opinions
- Williams v. Union Central Life InsuranceSupreme Court of the United States · 1934
- Warren v. KingSupreme Court of the United States · 1883
- Board of Assessors of the Parish v. New York Life InsuranceSupreme Court of the United States · 1910
- In re Fechheimer Fisher Co.Court of Appeals for the Second Circuit · 1914
- Guilford-Chester Water Co. v. Town of GuilfordSupreme Court of Connecticut · 1928
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