Maumee Malleable Castings Co. v. Commissioner
United States Board of Tax Appeals
Prior to May 1, 1936, petitioner executed a written contract which contained a provision prohibiting it from paying dividends until a debt owed by it was paid in full. By the terms of the debt petitioner was not required to pay it in full in the taxable year, but was permitted to do so. At the very end of the taxable year petitioner was able financially to pay the debt in full; and shortly after the end of the taxable year petitioner did pay the debt in full.
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Prior to May 1, 1936, petitioner executed a written contract which contained a provision prohibiting it from paying dividends until a debt owed by it was paid in full. By the terms of the debt petitioner was not required to pay it in full in the taxable year, but was permitted to do so. At the very end of the taxable year petitioner was able financially to pay the debt in full; and shortly after the end of the taxable year petitioner did pay the debt in full. Petitioner's failure to pay the debt in full in the taxable year was actuated by sound business purposes. Held, that under section…
1Opinion of the Court
THE MAUMEE MALLEABLE CASTINGS COMPANY, PETITIONER, v. COMMISSIONER OF INTERNAL REVENUE, RESPONDENT.
Maumee Malleable Castings Co. v. Commissioner
Docket No. 100933.
United States Board of Tax Appeals
44 B.T.A. 263; 1941 BTA LEXIS 1350;
April 24, 1941, Promulgated
Prior to May 1, 1936, petitioner executed a written contract which contained a provision prohibiting it from paying dividends until a debt owed by it was paid in full. By the terms of the debt petitioner was not required to pay it in full in the taxable year, but was permitted to do so. At the very end of the taxable year petitioner was…
2Cases cited3 opinions
- Page Oil Co. v. CommissionerUnited States Board of Tax Appeals · 1940
- Kilby Steel Co. v. CommissionerUnited States Board of Tax Appeals · 1940
- Maumee Malleable Castings Co. v. CommissionerUnited States Board of Tax Appeals · 1941