Public Service Electric & Gas Co. v. United States

. MaddeN, Judge,

delivered the opinion of the court:

This is a suit for refund of income taxes for the taxable period July 1 to December 31,1948, the amount claimed being $593,724.42. The basis of the plaintiff’s claim is that it was entitled to but was denied a certain credit in computing its surtax net income. It relies upon sections 15 (a) and 26 (h) of the Internal Eevenue Code of 1939.

Section 15 (a) says that “corporation surtax net income,” in the case of a public utility, means the net income minus, inter alia, the credit provided in section 26 (h) for dividends paid on its preferred…