Century Electric Co. v. Commissioner
United States Tax Court
For the period from March 1, 1913, to December 31, 1935, the petitioner's earnings and profits were substantially in excess of the cash dividends paid. On its books, such excess of earnings and profits were capitalized through the payment of stock dividends of common stock on common stock.
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For the period from March 1, 1913, to December 31, 1935, the petitioner's earnings and profits were substantially in excess of the cash dividends paid. On its books, such excess of earnings and profits were capitalized through the payment of stock dividends of common stock on common stock. Held, that the payment of the stock dividends did not effect a distribution of petitioner's earnings and profits, see section 115 (h) of the Revenue Act of 1936, and that the petitioner at December 31, 1935, and at December 31, 1936, did not have a deficit in accumulated earnings and profits and is not…
1Opinion of the Court
supplemental opinion.
Turnee, Judge \
As originally presented, the only issue in this proceeding was whether, for the purpose of detérmining the surtax on its undistributed profits, the petitioner was entitled to certain credits under section 26 (c) (2) of the Revenue Act of 1936. because of a contract restricting the payment of dividends. On November 30. 1942. this Court entered its memorandum opinion deciding the issue against the petitioner, and on December 1. 1942. entered its decision pursuant to the memorandum opinion. Thereafter on December 31. 1942. petitioner filed motions to vacate…
2Cases cited8 opinions
- Eisner v. MacOmberSupreme Court of the United States · 1920
- Koshland v. HelveringSupreme Court of the United States · 1936
- White v. United StatesSupreme Court of the United States · 1938
- Helvering v. GriffithsSupreme Court of the United States · 1943
- BERETTA v. COMMISSIONERUnited States Tax Court · 1942
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3Cited by7 opinions
- United States v. Byron Sash & Door Co.Court of Appeals for the Sixth Circuit · 1945
- United States v. Ogilvie Hardware Co.Court of Appeals for the Fifth Circuit · 1946
- Century Electric Co. v. CommissionerCourt of Appeals for the Eighth Circuit · 1944
- American Gypsum Co. v. CommissionerUnited States Tax Court · 1944
- Century Electric Co. v. CommissionerUnited States Tax Court · 1944
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