Lehigh Structural Steel Co. v. Commissioner
United States Board of Tax Appeals
Petitioner's amended charter provided for sinking fund for retirement of preferred stock, whereby percentage of net earnings of taxable year after payment of preferred dividends was to be set aside before any other dividends could be paid. The charter provision was set out in preferred stock certificates. Held, petitioner is not entitled to credit of such amount under section 26(c)(1), Revenue Act of 1936; charter provision held not a contract within meaning of act.
1Opinion of the Court
*423OPINION.
Sternhagen :
The petitioner claims a credit for the amount set aside in the sinking fund for the purchase and retirement of its preferred stock. The Commissioner has disallowed the credit “because the instrument on which your claim for credit is based does not satisfy the conditions as prescribed in section 26 (c) (1), Revenue Act of 1936.”1 If the share be called a contract, the statute is liter*424ally met, for it is in writing, was executed in 1933, and contains a provision which prohibits the payment of dividends until after the required credit to the sinking fund. The question is…
2Cases cited1 opinion
- Helvering v. Northwest Steel Rolling Mills, Inc.Supreme Court of the United States · 1940
3Cited by7 opinions
- Lehigh Structural S. Co. v. Commissioner of Int. Rev.Court of Appeals for the Third Circuit · 1942
- Supplee-Biddle Hardware Co. v. CommissionerCourt of Appeals for the Third Circuit · 1944
- American Gypsum Co. v. CommissionerUnited States Tax Court · 1944
- Bishop & B. Mfg. Co. v. CommissionerUnited States Board of Tax Appeals · 1941
- Lehigh Structural Steel Co. v. CommissionerUnited States Board of Tax Appeals · 1941
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