Brewster Shirt Corp. v. Commissioner

AUGUSTUS N. HAND, Circuit Judge.

The taxpayer seeks to have reversed an order of the Tax Court of the United States which sustained a determination by the Commissioner of Internal Revenue of a deficiency in excess profits taxes for the year 1941 in the amount of $3,148.91.

The question before us is whether various advances to the taxpayer by its factor Mills Factors Corporation- represented “borrowed capital” within the meaning of Section 719(a) (1), 26 U.S.C.A. Int.Rev. Code, § 719(a) (1), for the purpose of computing its excess profits.

Section 710 of the Revenue Act, 26 U.S.C.A. Int.Rev.Code,…