Little John Coal Co. v. Smith

MAJOR, Circuit Judge.

This is an appeal from a judgment favorable to the defendant in an action by the plaintiff to‘recover income taxes alleged to have been wrongfully collected. The wrongful collection was alleged to have resulted from a refusal by the Commissioner of Internal Revenue to allow credit on plaintiff’s income tax for the fiscal years, ending March 31, 1937' and March 31, 1938. Plaintiff’s contention, denied by the defendant, is that as a corporation it was. entitled to such credit on account of a contract restricting payment of dividends.

The statute relied upon is Sec. 26(c)…