FINANCE & INVESTMENT CORPORATION v. BURNET

No. 5346.

57 F.2d 444 (1932)

FINANCE & INVESTMENT CORPORATION v. BURNET, Commissioner of Internal Revenue.

Court of Appeals of the District of Columbia.

Decided March 7, 1932.


Attorney(s) appearing for the Case

W. C. Sullivan, of Washington, D. C., for appellant.

Sewall Key, C. M. Charest, and James K. Polk, Jr., all of Washington, D. C., G. A. Youngquist, Asst. Atty. Gen., and Wm. Earl Smith and J. P. Jackson, both of Washington, D. C., for appellee.

Before MARTIN, C. J., and ROBB, VAN ORSDEL, and GRONER, Associate Justices.


MARTIN, Chief Justice.

This appeal relates to corporation income taxes for the year 1925. Appellant, a Delaware corporation, claimed certain deductions in its returns for that year for payments made during the year to its preferred stockholders, claiming that the holders of the preferred stock had thereby become creditors of the corporation, and that the payments, although called dividends, were in fact interest. The Commissioner, however, held that the payments were...

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