Colt's Mfg. Co. v. Commissioner
United States Tax Court
1. Held, when viewed in the light of all the facts and circumstances, the 120,000 shares of its own stock, which petitioner had acquired in May 1950, pursuant to a resolution adopted by its stockholders authorizing the directors "to purchase or otherwise acquire outstanding shares of the capital stock of the company and to hold, sell, exchange, transfer or retire said shares from time to time, to such an extent, in such manner and upon such terms as the directors may deem…
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1. Held, when viewed in the light of all the facts and circumstances, the 120,000 shares of its own stock, which petitioner had acquired in May 1950, pursuant to a resolution adopted by its stockholders authorizing the directors "to purchase or otherwise acquire outstanding shares of the capital stock of the company and to hold, sell, exchange, transfer or retire said shares from time to time, to such an extent, in such manner and upon such terms as the directors may deem advisable," and which shares were thereafter held in the treasury until canceled and retired on December 18, 1952, are…
1Dissent
Murdoch, A,
dissenting: This petitioner acquired 120,000 shares of its own $25-par-value capital stock in May 1950 by the payment of over $6 million of its cash to the former owners of those shares. The payment for each $25-par-value share averaged over $52 per share. The majority opinion holds that the total assets of this corporation in 1952 included those 120,000 shares at a value of over $6 million. A tentative excess profits credit is computed by taking 12 per cent of the first $5 million, 10 per cent of the second $5 million, and 8 per cent of the balance of the total assets. The 120,000…
2Cases cited1 opinion
- Sandoval Zinc Co. v. CommissionerUnited States Tax Court · 1958