R. B. George Machinery Co. v. Commissioner

*597OPINION.

Aeundell :

The answer to the question is to be found in the proper construction of section 23 (b) of the Revenue Act of 1928, which reads as follows:

Interest. — All interest paid or accrued within the taxable year on indebtedness, except on indebtedness incurred or continued to purchase or carry obligations or securities (other than obligations of the United States issued after September 24, 1917, and originally subscribed for by the taxpayer) the interest upon which is wholly exempt from taxation under this title.

The parties have proceeded on the theory that the money obtained from…