Atlantic City Electric Company v. United States

MADDEN, Judge.

The plaintiff sues for $84,105.60 of income tax paid by it for the year 1944. It claims that it should not have had to pay this tax because it was entitled to a credit which would have reduced its taxable income.

Section 26(h) of the Internal Revenue Code of 1939, 26 U.S.C.A. § 26(h), provided that a public utility corporation, in computing its surtax net income, was entitled to a credit for, i. e., a deduction of, “the amount of dividends paid during the taxable year on its preferred stock.” The plaintiff was a public utility, and the stock in question qualified in all respects…