Wellington Fund, Inc. v. Commissioner
United States Tax Court
1. Where approximately 98 percent of the business of petitioner, organized for the purpose of holding, investing, or reinvesting in stocks and securities, was of that character throughout the taxable periods involved, it is held that such percentage constitutes "substantially all" of its business within the purview of section 361 (a) (1) of Supplement Q of the Revenue Act of 1938, and the Internal Revenue Code. 2. On the facts it is held that a note for $ 75,000 held by…
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1. Where approximately 98 percent of the business of petitioner, organized for the purpose of holding, investing, or reinvesting in stocks and securities, was of that character throughout the taxable periods involved, it is held that such percentage constitutes "substantially all" of its business within the purview of section 361 (a) (1) of Supplement Q of the Revenue Act of 1938, and the Internal Revenue Code. 2. On the facts it is held that a note for $ 75,000 held by petitioner during the two taxable periods involved and evidencing a loan in that amount made by petitioner for a 12-month…
1Opinion of the Court
OPINION.
Leech, Judge:
The purpose of those provisions, it is clear, was to extend relief to genuine mutual investment companies which diversified widely their security investments and thus did not occupy the status of holding companies, but merely permitted their shareholders to obtain the benefit of such diversified holding even with a small investment.1 The defining and limiting provisions are all framed to eliminate companies which are not strictly of that character. They must be organized and operated for that purpose and may not hold more than 10 percent of the stock or securities of any…
2Cases cited2 opinions
- Pinellas Ice & Cold Storage Co. v. CommissionerSupreme Court of the United States · 1933
- Neville Coke & Chemical Co. v. CommissionerUnited States Tax Court · 1944
3Cited by17 opinions
- Baker Commodities, Inc. v. CommissionerUnited States Tax Court · 1967
- Nye v. CommissionerUnited States Tax Court · 1968
- Brown v. CommissionerUnited States Tax Court · 1956
- Camp Wolters Enterprises, Inc. v. CommissionerUnited States Tax Court · 1954
- D'Angelo Assoc., Inc. v. CommissionerUnited States Tax Court · 1978
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