Montclair, Inc. v. Commissioner of Internal Revenue

JONES, Circuit Judge.

The Tax Court, in a decision upholding the Commissioner of Internal Revenue in his determination of income tax deficiencies for 1955, 1956 and 1957, decided that deductions claimed as interest by the taxpayer corporation were, in fact, dividends on risk capital. The taxpayer, Montclair, Inc., is a Georgia corporation organized in 1944. It issued ten shares of common stock of the par value of $100 per share, of which three shares were issued to M. F. Brice, two shares to his wife, Margaret T. Brice, three shares to Dewey Scarboro, and two shares to his wife, Grace J.…