Houston Cotton Exchange Bldg. Co. v. Commissioner

HUTCHESON, Circuit Judge.

The Commissioner determined, and the Board affirmed,1 that payments the Petitioner made on its debt in its fiscal year 1938 did not entitle it to a Section 26(c) (2) credit deduction.2 Agreeing with peti*324tioner that the payments in question were made out of the earnings and profits of the, taxable year; and that they were made pursuant to a provision of a written contract executed by the corporation requiring them to be paid within the taxable year in discharge of a debt; Commissioner and Board disallowed them because the trust indenture under which they were paid bore…