Thew Shovel Co. v. Commissioner
United States Board of Tax Appeals
CREDIT - CONTRACTS RESTRICTING DIVIDENDS. - In correspondence between petitioner and a bank from which it obtained a loan, petitioner stated that it would be its "policy" to take no action with respect to the payment of dividends without fully discussing the situation with the bank "and ascertaining that any action proposed is not considered unjustifiable."
Read the full summary
CREDIT - CONTRACTS RESTRICTING DIVIDENDS. - In correspondence between petitioner and a bank from which it obtained a loan, petitioner stated that it would be its "policy" to take no action with respect to the payment of dividends without fully discussing the situation with the bank "and ascertaining that any action proposed is not considered unjustifiable." During the taxable year the petitioner requested and received the bank's consent to the distribution of a portion of its earnings as dividends. Held, under the facts shown the amount distributable as dividends during the taxable year under…
1Opinion of the Court
THE THEW SHOVEL COMPANY, PETITIONER, v. COMMISSIONER OF INTERNAL REVENUE, RESPONDENT.
Thew Shovel Co. v. Commissioner
Docket No. 102007.
United States Board of Tax Appeals
45 B.T.A. 920; 1941 BTA LEXIS 1048;
December 9, 1941, Promulgated
CREDIT - CONTRACTS RESTRICTING DIVIDENDS. - In correspondence between petitioner and a bank from which it obtained a loan, petitioner stated that it would be its "policy" to take no action with respect to the payment of dividends without fully discussing the situation with the bank "and ascertaining that any action proposed is not considered unjustifiable." During…
2Cases cited1 opinion
- Thew Shovel Co. v. CommissionerUnited States Board of Tax Appeals · 1941