Janeway v. Commissioner of Internal Revenue

FRANK, Circuit Judge.

We read the findings of the Tax Court taken together with its opinion 1 as saying that, as a matter of fact, all the payments made by the taxpayers to the corporation were capital contributions of such character that, as against any third persons (such as, e.g., persons contracting with the corporation) the taxpayers would have to be regarded as stockholders and nothing else. As the Tax Court’s conclusion rests upon a determination of fact supported by substantial evidence, 2 we cannot disturb it, even under a restricted interpretation of Dobson v. Commissioner, 320 U.S.…