Pittsburgh Forgings Co. v. Commissioner
United States Tax Court
A mortgage indenture dated October 1, 1932 provided that petitioner should declare or pay no dividends on its capital stock unless, at the time of declaration, its bonds should have been redeemed or otherwise cancelled in definite amounts set forth therein; and also that the dividends declared by petitioner should not exceed the amount of such bonds redeemed and retired during the year.
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A mortgage indenture dated October 1, 1932 provided that petitioner should declare or pay no dividends on its capital stock unless, at the time of declaration, its bonds should have been redeemed or otherwise cancelled in definite amounts set forth therein; and also that the dividends declared by petitioner should not exceed the amount of such bonds redeemed and retired during the year. Its net income for 1937 was about $500,000. Under a commitment to a bank it curtailed a loan and redeemed or retired none of its bonds. Held, that petitioner was actuated by sound business motives and is…
1Opinion of the Court
Pittsburgh Forgings Company v. Commissioner.
Pittsburgh Forgings Co. v. Commissioner
Docket No. 111147.
United States Tax Court
1943 Tax Ct. Memo LEXIS 33; 2 T.C.M. (CCH) 1080; T.C.M. (RIA) 43506;
December 11, 1943
A mortgage indenture dated October 1, 1932 provided that petitioner should declare or pay no dividends on its capital stock unless, at the time of declaration, its bonds should have been redeemed or otherwise cancelled in definite amounts set forth therein; and also that the dividends declared by petitioner should not exceed the amount of such bonds redeemed and retired during the year.…
2Cases cited6 opinions
- Page Oil Co. v. CommissionerUnited States Board of Tax Appeals · 1940
- Commissioner v. E. C. Atkins & Co.Court of Appeals for the Seventh Circuit · 1942
- Dr. Pepper Bottling Co. v. CommissionerUnited States Board of Tax Appeals · 1941
- E. C. Atkins & Co. v. CommissionerUnited States Board of Tax Appeals · 1941
- Maumee Malleable Castings Co. v. CommissionerUnited States Board of Tax Appeals · 1941
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