Commissioner v. Dulup Oil Co.

McCORD, Circuit Judge.

In determining the taxpayer’s liability for surtax on undistributed profits for the years 1936 and 1937, the Board of Tax Appeals allowed credits claimed under § 26(c) (2) of the Revenue Act of 1936. § 26(c) (2), 26 U.S.C.A. Int.Rev.Acts, page 836.

Section 26(c) (2) provides that in computing the surtax on undistributed profits a credit be allowed in an amount equal to the portion of the earnings and profits of the taxable year which “is required (by a provision of a written contract executed by the corporation prior to May 1, 1936, which provision expressly deals with…