Palmetto Quarries Co. v. Commissioner
United States Board of Tax Appeals
The distribution of corporate assets by one domestic corporation to another, together with a pro rata portion of the accumulated profits of such corporation, in the cancellation or redemption of its capital stock is, under the facts of this case, a distribution in partial liquidation as defined in subdivision (h) of section 115 of the Revenue Act of 1928.
1Opinion of the Court
OPINION.
Moeris:
The respondent has determined a deficiency in income tax of $1,980 for the taxable year 1929, and it is for the redetermination thereof that this proceeding is brought.
' The petitioner alleges and contends that error was committed by the respondent in that he failed to classify a distribution of $27,-782.68, made by the South Carolina Granite Corporation, as an ordinary dividend, it having been so classified in the return filed for the taxable year 1929.
The petitioner is a corporation, organized and incorporated under the laws of South Carolina in 1923, and has. its principal…
2Cases cited1 opinion
- Salt Lake Hardware Co. v. CommissionerUnited States Board of Tax Appeals · 1932
3Cited by1 opinion
- Palmetto Quarries Co. v. CommissionerUnited States Board of Tax Appeals · 1934