Southport Mill, Ltd. v. Commissioner

BRYAN, Circuit Judge.

On a former petition for review in this case, we affirmed a decision of the United States Board of Tax Appeals which excluded from invested capital of petitioner two amounts, one for $109,000 and one for $197,-500, and classified those amounts as borrowed capital. The Revenue Act of 1918, in force during the period involved, by section 326, includes as invested capital paid-in surplus, but excludes borrowed capital. 40 Stat. 1092. Petitioner agreed to pay to the stockholders who advanced the sums above mentioned 6 per cent, per annum, which, though designated as…