COMMISSIONER OF INTERNAL REVENUE v. Brown

FITZHENRY, Circuit Judge.

These eases are brought here by the Commissioner to reverse a holding of the Board of Tax Appeals that the redemption and cancellation of the preferred stock in question did not take place “at such time and in such manner” as to make it essentially equivalent to the distribution of a taxable dividend within the meaning of section 201 (g) of the Revenue Act of 1926, 26 USCA § 932 (g).

In 1922 there was a recapitalization of the Squire Dingee Company, the stock of which was owned by Prank B. Brown and Harry A. Brown, whereby the capital was increased from $100,000 to…