Walsh Holyoke Steam Boiler Works, Inc. v. Commissioner
United States Tax Court
The amount of debenture bonds and notes which were purchased by one of petitioner's stockholders at a large discount and paid in to petitioner, in a recapitalization, in exchange for new shares of stock and new debenture bonds, held, not includible in equity invested capital in the absence of any showing as to what portion of the amount of the old obligations was paid in for stock and what portion for bonds, or any facts upon which such an allocation might be made.
1Opinion of the Court
OPINION.
Smith, Judge-.
This proceeding involves a deficiency in excess profits tax for 1041 in the amount of $19,751.67. Petitioner alleges that the respondent erred in determining its equity invested capital for 1941, and also for 1940, as it affects the excess profits carry-over from that year. Other issues raised in the pleadings have been settled by stipulation and the respondent moved for such increase in the deficiency as will result therefrom. The facts as to the remaining issue involving equity invested capital have been stipulated and may be summarized as follows:
Petitioner is a…
2Cases cited1 opinion
- Liberty Mirror Works v. CommissionerUnited States Tax Court · 1944
3Cited by4 opinions
- Crean Bros., Inc. v. CommissionerUnited States Tax Court · 1950
- Crean Bros., Inc. v. CommissionerUnited States Tax Court · 1950
- Merchants Warehouse Company, Inc. v. Commissioner of Internal RevenueCourt of Appeals for the Sixth Circuit · 1958
- Walsh Holyoke Steam Boiler Works, Inc. v. CommissionerUnited States Tax Court · 1945