Hobbs-Western Co. v. Commissioner

THOMAS, Circuit Judge.

The United States Board of Tax Appeals redetermined a net income tax deficiency of the petitioning taxpayer for the fiscal year ended October 31, 1937, in the amount of $9,849.29, and the taxpayer seeks a review.

The deficiency results from the disallowance by the Commissioner of a dividend-paid credit claimed by the petitioner under § 26(c) of the Revenue Act of 1936, c. 690, 49 Stat. 1648, 1664, 26 U.S.C.A. Int.Rev. Acts, page 836. Section 14(b) of the Act, 26 U.S.C.A. Int.Rev.Acts, page 823, imposed a surtax upon the undistributed net income of business corporations.…