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
AIRTHERM MANUFACTURING CO., PETITIONER, v. COMMISSIONER OF INTERNAL REVENUE, RESPONDENT.
Airtherm Mfg. Co. v. Commissioner
Docket No. 100808.
United States Board of Tax Appeals
43 B.T.A. 736; 1941 BTA LEXIS 1445;
February 28, 1941, Promulgated
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…
2Cases cited1 opinion
- Airtherm Mfg. Co. v. CommissionerUnited States Board of Tax Appeals · 1941