E. C. Atkins & Co. v. Commissioner
United States Board of Tax Appeals
1. Petitioner in 1932 borrowed a large amount from a bank and agreed in writing to pay no dividend on its capital stock so long as the loan was unpaid, but with a proviso that the agreement should not prevent petitioner from distributing any stock dividend. During the taxable year the loan was unpaid and petitioner had no surplus subject to capitalization.
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1. Petitioner in 1932 borrowed a large amount from a bank and agreed in writing to pay no dividend on its capital stock so long as the loan was unpaid, but with a proviso that the agreement should not prevent petitioner from distributing any stock dividend. During the taxable year the loan was unpaid and petitioner had no surplus subject to capitalization. Held, petitioner is entitled to credit under section 26(c)(1), Act of 1936. Columbia River Paper Mills,43 B.T.A. 263; Paraport Theatre Leasing Corporation,44 B.T.A. 108. 2. The fact that petitioner had cash sufficient to pay the balance of…
1Opinion of the Court
E. C. ATKINS AND COMPANY, PETITIONER, v. COMMISSIONER OF INTERNAL REVENUE, RESPONDENT.
E. C. Atkins & Co. v. Commissioner
Docket No. 99196.
United States Board of Tax Appeals
44 B.T.A. 441; 1941 BTA LEXIS 1329;
May 8, 1941, Promulgated
1. Petitioner in 1932 borrowed a large amount from a bank and agreed in writing to pay no dividend on its capital stock so long as the loan was unpaid, but with a proviso that the agreement should not prevent petitioner from distributing any stock dividend. During the taxable year the loan was unpaid and petitioner had no surplus subject to capitalization. Held,…
2Cases cited6 opinions
- Eisner v. MacOmberSupreme Court of the United States · 1920
- Tillotson Mfg. Co. v. CommissionerUnited States Board of Tax Appeals · 1933
- Columbia River Paper Mills v. CommissionerUnited States Board of Tax Appeals · 1941
- Paraport Theatre Leasing Corp. v. CommissionerUnited States Board of Tax Appeals · 1941
- E. C. Atkins & Co. v. CommissionerUnited States Board of Tax Appeals · 1941
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