Green Bay & W. R. v. Commissionner of Internal Revenue

MAJOR, Circuit Judge.

This is a petition for review of a decision of the Tax Court of the United States,, entered February 28, 1944, in which the court sustained deficiencies in the income taxes of Green Bay & Western Railroad Company (hereinafter referred to as petitioner), for the years 1937 and 1939, as-determined by the Commissioner of Internal Revenue.

In the taxable years, petitioner paid certain amounts from its earnings to the holders of its class A and class B debentures. The question for decision is whether such payments constituted interest “paid or accrued within the taxable year on…