HEIL BEAUTY SUPPLIES v. COMMISSIONER OF INTERNAL REV.

No. 14360.

199 F.2d 193 (1952)

HEIL BEAUTY SUPPLIES, Inc. v. COMMISSIONER OF INTERNAL REVENUE.

United States Court of Appeals Eighth Circuit.

October 15, 1952.


Attorney(s) appearing for the Case

Jerome F. Duggan and Dubinsky & Duggan, St. Louis, Mo., on the brief, for petitioner.

Harry Marselli, Sp. Asst. to Atty. Gen. (Ellis N. Slack, Acting Asst. Atty. Gen., Robert N. Anderson and L. W. Post, Sp. Assts. to Atty. Gen., on the brief), for respondent.

Before SANBORN, JOHNSEN and COLLET, Circuit Judges.


JOHNSEN, Circuit Judge.

A corporate taxpayer seeks review of a decision of the Tax Court, which held that the amounts paid by it as "commission" to one of its officers — the owner of approximately 70 per cent of its capital stock — did not represent "compensation for personal services actually rendered", but constituted in reality and fact a distribution of corporate profits in lieu of dividends, and that such payments therefore were not deductible,...

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