BASTIAN BROS. CO. v. McGOWAN,

No. 376.

113 F.2d 489 (1940)

BASTIAN BROS. CO. v. McGOWAN, Collector of Internal Revenue.

Circuit Court of Appeals, Second Circuit.

July 11, 1940.


Attorney(s) appearing for the Case

Remington & Remington, of Rochester, N.Y. (Albert S. Willey, of Rochester, N. Y., of counsel), for appellant.

Samuel O. Clark, Jr., Asst. Atty. Gen., Sewall Key and Arthur L. Jacobs, Sp. Assts. to Atty. Gen., and George L. Grobe, U. S. Atty., and Joseph J. Doran, Asst. U. S. Atty., both of Buffalo, N. Y., for appellee.

Before SWAN, AUGUSTUS N. HAND, and PATTERSON, Circuit Judges.


PER CURIAM.

By this action the plaintiff seeks to recover sums paid as surtaxes on undistributed profits for the years 1936 and 1937. Its complaint was dismissed as stating no cause of action. The question presented is whether a corporation whose capital has been so impaired by operating losses in prior years that in the tax years in question it is forbidden by the statutes of the state of its incorporation to declare a dividend, is entitled to a credit under section...

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