National Grocer Co. v. Commissioner
United States Board of Tax Appeals
The surplus and undivided profits of a corporation, which must be included in invested capital under the provisions of section 326 of the Revenue Act of 1918, can not be reduced by the elimination of any gains or profits of such corporation which may have been exempt from income taxes.
1Opinion of the Court
*689OPINION.
Trussell :
The decision of this appeal must be determined in accordance with the terms and the meaning of section 326 of the Revenue Act of 1918 which, so far as relevant, reads as follows:(a) That as used in this title the term “invested capital” for any year means * * * (3) Paid-in or earned surplus and undivided profits; not including surplus and undivided profits earned during the year.
The $51,252.58 which the Commissioner has deducted from the invested capital of this taxpayer for the years 1918 and 1919 is ninety-six one-hundred-and-eighty-fifths of $98,768, the gain realized by…
2Cases cited1 opinion
- State v. RichartSupreme Court of Louisiana · 1910
3Cited by5 opinions
- Siegel v. CommissionerUnited States Board of Tax Appeals · 1934
- American Cigar Co. v. CommissionerUnited States Board of Tax Appeals · 1930
- Ayer v. CommissionerUnited States Board of Tax Appeals · 1928
- National Grocer Co. v. CommissionerUnited States Board of Tax Appeals · 1925
- Staples Coal Co. v. CommissionerUnited States Board of Tax Appeals · 1931