Eva D. Bradbury v. Commissioner of Internal Revenue

HARTIGAN, Circuit Judge.

This is a petition for review of a decision of the Tax Court of the United States which entered judgment sustaining a determination by the Commissioner of Internal Revenue of a deficiency in the income tax due from the petitioner for the taxable year 1956 in the amount of $7,518.89.

This case raises the question of whether the cancellation of petitioner’s indebtedness to a corporation and an additional credit to her account, upon the redemption of forty-four shares of stock which she held in the corporation were a distribution essentially equivalent to a dividend within…