Florence Cotton Mills v. Commissioner

SIBLEY, Circuit Judge.

Florence Cotton Mills, with reference to the surtax on undistributed profits earned in its fiscal year ending August 31, 1937, claimed a credit under Sect. 26(c) (1) of the Revenue Act of 1936, 26 U.S.C.A. Int. Rev. Acts, page 836, because it could not have distributed its profits without violating a written contract with Reconstruction Finance Corporation, which contract was asserted to have been executed by the taxpayer prior to May 1, 1936. This claim was denied by the Commissioner, and his decision was upheld by the Board of Tax Appeals.

The taxpayer on July 2, 1935,…