Babson v. Commissioner
United States Board of Tax Appeals
1. Section 201(g), Revenue Act of 1926, does not apply to a distribution made before January 1, 1926, in cancellation and redemption of corporate stock, not issued as a stock dividend.
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1. Section 201(g), Revenue Act of 1926, does not apply to a distribution made before January 1, 1926, in cancellation and redemption of corporate stock, not issued as a stock dividend. Section 201(f), Revenue Act of 1924, remained in effect until January 1, 1926, with respect to such transaction. 2. Where there is no relation between the issuance of corporate stock and a subsequent cancellation and redemption evidencing a continuing plan to effect by that means a distribution of corporate earnings, freed from the usual incident of tax upon ordinary dividend distributions, and where no such…
1Opinion of the Court
*863OPINION.
GoodRich :
As disclosed by his notices of the deficiency, respondent determined that the amounts received by each of petitioners in 1925 and 1926 from the corporation should be treated, under the provisions of section 201 (g), Bevenue Act of 1926, as taxable dividends. By amended answer he avers that, regardless of the applicability of section 201 (g) his. determinations were without error for the reason that the amounts so received by petitioners were, in fact and in law, ordinary dividends within the meaning of section 201 (a) of the 1926 Act1 and taxable as such.
Petitioners contend…
2Cases cited7 opinions
- Eisner v. MacOmberSupreme Court of the United States · 1920
- Towne v. EisnerSupreme Court of the United States · 1918
- Lynch v. HornbySupreme Court of the United States · 1918
- Hellmich v. HellmanSupreme Court of the United States · 1928
- Lynch v. TurrishSupreme Court of the United States · 1918
2 more not listed; retrieve them via the Exa API.
3Cited by14 opinions
- Flanagan v. HelveringCourt of Appeals for the D.C. Circuit · 1940
- Curlee v. CommissionerUnited States Board of Tax Appeals · 1933
- Straub v. CommissionerUnited States Board of Tax Appeals · 1933
- Connelly v. CommissionerUnited States Board of Tax Appeals · 1934
- Ward M. Canaday, Inc. v. CommissionerUnited States Board of Tax Appeals · 1933
9 more not listed; retrieve them via the Exa API.