Commissioner v. Winchester Repeating Arms Co.

SPARKS, Circuit Judge.

The principal question here presented is whether the taxpayer is entitled to a dividends paid credit of $2,160,274, for the year 1938, by reason of its distribution in that year to the Western Cartridge Company (which owned all its capital stock) of all its assets, including its earned surplus accumulated after February 28, 1913, in complete liquidation, followed by its dissolution.

The Tax Court allowed the credit claimed by the taxpayer, with only the brief statement that, “The respondent (Commissioner) concedes that prior Board decisions are opposed to his action in…