Gem Jewelry Co. v. Commissioner of Internal Revenue

HOLMES, Circuit Judge.

This appeal involves income and excess profits taxes for the fiscal year that ended July 31, 1941. Two questions are presented: (1) Whether the Tax Court erred in sustaining the Commissioner’s determination as to the deductions allowable as compensation for services of certain officers of the petitioner 1 ; and (2) whether said court erred in sustaining the Commissioner’s determination that the petitioner was not entitled to include in its equity invested capital the sum of $30,000, allegedly contributed as paid-in surplus. The evidence before the Tax Court consisted of…