Century Electric Co. v. Commissioner

WOODROUGH, Circuit Judge.

This is an appeal from a decision of the Tax Court which denied the taxpayer a credit in the calculation of the surtax on its undistributed profits for the years 1936 and 1937 to which the taxpayer claimed it was entitled under Section 26(c) (3) of the Revenue Act of 1936, as amended by Revenue Act 1942, § 501(a) (2), 26 U.S. C.A. Int.Rev.Acts. The facts were found by the Tax Court, and its supplemental opinion, reported in 3 T.C. 297, discloses the grounds of its decision.

It appears that the taxpayer was at no time insolvent and its books showed large accumulated…