American Steel Foundries v. Ernest J. Sauber, District Director of Internal Revenue, Chicago, Illinois

DUFFY, Chief Judge.

In this action plaintiff seeks to recover $11,686.98 assessed as a documentary stamp tax under § 1802(a) Internal Revenue Code of 1939. Plaintiff and defendant each moved for summary judgment. This appeal is from the judgment entered in favor of plaintiff taxpayer.

On September 30, 1949, taxpayer, a New Jersey corporation, pursuant to authorization by its Board of Directors, transferred $11,874,950 from its capital surplus and net income Employed in the Business accounts to its common stock account. As a result, the stated value of taxpayer’s issued and outstanding no-par…