Commissioner of Internal Revenue v. Wakefield

ALLEN, Circuit Judge.

This is a petition to review a decision of the Tax Court of the United States which overruled the Commissioner’s determination of income tax deficiency against the respondent for the year 1937 and found that there was an overpayment of income tax for that year.

The respondent and two other persons, during the calendar year 1937, were members of a partnership which owned 98.-975% of the stock of the Nashville Securities Company, a corporation. In 1937 the corporation, which was on the accrual basis, had $28,773.06 available for distribution as dividends. In June, 1937, the…