United States v. Baldy

HEALY, Circuit Judge.

Appellee had judgment in a suit to obtain a refund of a tax exacted under § 213 of the National Industrial Recovery Act (48 Stat. 206), and the Government appeals.1 The statute, § 213(a), imposed an excise tax of 5% upon the receipt of corporate dividends, the tax to be withheld at the source. Dividends declared before the date of the enactment of the statute (June 16, 1933), although paid after that date, were exempted from the tax.

The findings are that on April 15, 1933 appellee’s board of directors adopted a resolution reading as follows: “Mr. Gibbs then moved and Mr.…