Airtherm Mfg. Co. v. Commissioner
United States Board of Tax Appeals
Where a corporation issued preferred stock certificates in 1936, providing that dividends on preferred stock would be cumulative beginning with the year commencing May 1, 1939, and paid annually, before any dividend would be set apart or paid on the common stock, such a certificate is not a contract restricting payment of dividends in the taxable year ended March 31, 1937, as contemplated by section 26(c)(1) of the Revenue Act of 1936.
1Opinion of the Court
OPINION.
Kern :
This proceeding involves income tax liability for the fiscal year ended March 31,1937. The Commissioner determined a deficiency of $259.66, and in this proceeding petitioner alleges error in such determination to the extent of $215.66. The sole question now presented is whether any written contract entered into and executed by the petitioner restricted the payment of dividends during the taxable year. Subsequent to the filing of the petition respondent conceded that petitioner is entitled to accrue for the fiscal year ended March 31, 1937, a sum of $130 as a capital stock tax,…
2Cases cited1 opinion
- Helvering v. Northwest Steel Rolling Mills, Inc.Supreme Court of the United States · 1940
3Cited by3 opinions
- Airtherm Mfg. Co. v. CommissionerUnited States Board of Tax Appeals · 1941
- Bishop & B. Mfg. Co. v. CommissionerUnited States Board of Tax Appeals · 1941
- Central West Coal Co. v. CommissionerUnited States Board of Tax Appeals · 1941