Walter Apschnikat v. United States

I do not disagree with the majority’s statement of the legal principles applicable to this case, but I think there is a total lack of proof to sustain the theory of the case on which they rely.

The District Court directed a verdict for the Government at the close of taxpayers’ evidence on the theory that taxpayers had purchased Lenk Manufacturing Company with the corporation’s own money, thereby receiving a benefit which amounts to a constructive dividend. The District Judge, in his analysis of the case and statement of his reasons for directing a verdict, made no finding, either directly or…