Central Kansas Power Co. v. Commissioner
United States Board of Tax Appeals
1. Two contracts reserving title in the vendor are construed under Kansas law to be chattel mortgages rather than conditional sales. As such, payments on these contracts are payments on an "indebtedness" as defined in section 27(a)(4), Revenue Act of 1938 and I.R.C., and give rise to a dividends paid credit. 2. No dividends paid credit is allowable under section 27(a)(4) for payments on promissory notes given in a prior year in satisfaction of dividends.
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1. Two contracts reserving title in the vendor are construed under Kansas law to be chattel mortgages rather than conditional sales. As such, payments on these contracts are payments on an "indebtedness" as defined in section 27(a)(4), Revenue Act of 1938 and I.R.C., and give rise to a dividends paid credit. 2. No dividends paid credit is allowable under section 27(a)(4) for payments on promissory notes given in a prior year in satisfaction of dividends. Spokane Dry Goods Co.,43 B.T.A. 793 (affd., 125 Fed.(2d) 865, followed.
1Opinion of the Court
THE CENTRAL KANSAS POWER COMPANY, PETITIONER, v. COMMISSIONER OF INTERNAL REVENUE, RESPONDENT.
Central Kansas Power Co. v. Commissioner
Docket No. 106539.
United States Board of Tax Appeals
46 B.T.A. 760; 1942 BTA LEXIS 823;
March 26, 1942, Promulgated
1. Two contracts reserving title in the vendor are construed under Kansas law to be chattel mortgages rather than conditional sales. As such, payments on these contracts are payments on an "indebtedness" as defined in section 27(a)(4), Revenue Act of 1938 and I.R.C., and give rise to a dividends paid credit.
2. No dividends paid credit is allowable…
2Cases cited9 opinions
- Bailey v. Baker Ice MacHine Co.Supreme Court of the United States · 1915
- Old Colony Trust Co. v. CommissionerSupreme Court of the United States · 1937
- Christie v. ScottSupreme Court of Kansas · 1908
- Spokane Dry Goods Co. v. CommissionerUnited States Board of Tax Appeals · 1941
- Freuhauf Trailer Co. v. State Corp. CommissionSupreme Court of Kansas · 1939
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