Gowran v. Commissioner
United States Board of Tax Appeals
DIVIDENDS. - Where both common and preferred shares are outstanding when a dividend is declared upon voting common stock and paid in nonvoting cumulative preferred shares at par value, such dividend is not a tax-free stock dividend. Tillotson Manufacturing Co. v. Commissioner, 76 Fed.(2d) 189, affirming 27 B.T.A. 913; James H. Torrens,31 B.T.A. 787, followed.
1Opinion of the Court
OPINION.
Leech :
These consolidated proceedings are under reconsideration pursuant to the Board’s order dated November 20, 1934. By order dated November 24, 1934, the proceedings were set for hearing evidence limited to the fair market value on July 1,1929, of the Hamilton Manufacturing Co. preferred stock. At such rehearing on February 13, 1935, petitioners filed a motion that the Board vacate its order directing reconsideration, that the Board deny respondent’s motion for reconsideration of the memorandum opinion heretofore entered, and that the Board enter judgment for petitioners. The…
2Cases cited1 opinion
- Doyle v. Mitchell Brothers Co.Supreme Court of the United States · 1918
3Cited by2 opinions
- Gowran v. CommissionerUnited States Board of Tax Appeals · 1935
- Horrmann v. CommissionerUnited States Board of Tax Appeals · 1936