Shellabarger Grain Products Co. v. Commissioner
United States Tax Court
1. At the beginning of the taxable year the petitioner had an impairment of its paid-in capital. During the year it decided to liquidate and dissolve. It sold its assets and business and before the end of the year filed a statement of intent to dissolve with the state authorities. The petitioner had net earnings or profits for the year and, after the sale of its assets and business, made a distribution in excess of such earnings or profits.
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1. At the beginning of the taxable year the petitioner had an impairment of its paid-in capital. During the year it decided to liquidate and dissolve. It sold its assets and business and before the end of the year filed a statement of intent to dissolve with the state authorities. The petitioner had net earnings or profits for the year and, after the sale of its assets and business, made a distribution in excess of such earnings or profits. Held: (a) That the distribution was a distribution in partial liquidation; (b) That, to the extent necessary to absorb the deficit in paid-in capital, the…
1Opinion of the Court
TuRNer. Judge:
The respondent has determined deficiencies of $12,284.86 and $1,163.57, respectively, in the petitioner’s income and excess profits taxes for the fiscal year ended September 30. 1938. The issues presented are the correctness of the respondent’s action (1) in disallowing dividends paid credit of $67,550 taken by petitioner; (2) in increasing petitioner’s taxable income by $8,382.08 as representing income realized by the petitioner on the cancellation of its indebtedness on its promissory note; (3) in disallowing a deduction of $232.37 taken as accrued interest; and (4) in…
2Cases cited4 opinions
- North American Oil Consolidated v. BurnetSupreme Court of the United States · 1932
- United States v. Kirby Lumber CoSupreme Court of the United States · 1931
- Helvering v. American Dental Co.Supreme Court of the United States · 1943
- Bolivian International Mining Corp. v. CommissionerUnited States Tax Court · 1943
3Cited by21 opinions
- Anderson v. CommissionerUnited States Tax Court · 1976
- McConway & Torley Corp. v. CommissionerUnited States Tax Court · 1943
- Fifth Avenue-14th Street Corp. v. CommissionerUnited States Tax Court · 1943
- Callan v. Comm'rUnited States Tax Court · 1970
- Grace National Bank of New York v. CommissionerUnited States Tax Court · 1950
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