United States v. Hillcrest Inv. Co.

RIDDICK, Circuit Judge.

The question on this appeal is whether the taxpayer is entitled to a credit for 1937 under section 26(c) (1) of the Revenue Act of 1936, 26 U.S.C.A. Int.Rev.Acts, page 836, against the surtax imposed by section 14 of the Act, 26 U.S.C.A. Int.Rev.Acts, page 823, on corporate profits earned but not distributed as dividends during the taxable year. The section under which the credit is claimed by the taxpayer and denied by the Commissioner permits a deduction from the corporate adjusted net income to the extent that such income could not be distributed as dividends…