Nordberg Mfg. Co. v. Kuhl

SPARKS, Circuit Judge.

Plaintiff appeals from a judgment of the District Court dismissing its suit to recover taxes alleged to have been illegally assessed for the year 1937, upon denial of its claim for dividends paid credit. The question presented is whether certain distributions to preferred stockholders of the taxpayer were dividends for which a credit was to be allowed on taxpayer’s surtax on undistributed profits for the year 1937, or were amounts in partial liquidation of the stock, *332not properly chargeable to earnings and profits. The court held that because the distributions were made…