JANEWAY ET UX.
v.
COMMISSIONER OF INTERNAL REVENUE; SHIELDS V. SAME

2d Cir. | 1945-02-06
Nos. 29, 30
147 F.2d 602 United States Court of Appeals for the Second Circuit (1945) Caution
Cited by 32 cases

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Holding

The court held that the Tax Court's factual determination that payments were capital contributions, supported by substantial evidence, could not be disturbed.


Facts & Procedural History

Taxpayers made payments to a corporation, which the Tax Court found to be capital contributions. The appellate court reviewed the Tax Court's factual …

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Opinion of the Court
FRANK, Circuit Judge.

FRANK, Circuit Judge.

We read the findings of the Tax Court taken together with its opinion1 as saying that, as a matter of fact, all the payments made by the taxpayers to the corporation were capital contributions of such character that, as against any third persons (such as, e.g., persons contracting with the corporation) the taxpayers would have to be regarded as stockholders and nothing else. As the Tax Court’s conclusion rests upon a determination of fact supported by substantial evidence,2 we cannot disturb it, even under a restricted interpretation of Dobson v. Commissioner, 320 U.S. 489, 64 S.Ct. 239.3 Accepting that conclusion, the decision of the Tax Court is correct.

Affirmed.

That we may do so, see, e.g., Insurance & Title Guarantee Co. v. Commissioner, 2 Cir., 36 F. 2d 842, 845; California Iron Yards Co. v. Commissioner, 8 Cir., 47 F. 2d 514, 518; Producers’ Creamery Co. v. United States, 5 Cir., 55 F. 2d 104, 108; Emerald Oil Co. v. Commissioner, 10 Cir., 72 F. 2d 681, 683; Flynn v. Commissioner, 5 Cir., 77 F. 2d 180, 183; California Barrel Co., Inc. v. Commissioner, 9 Cir., 81 F. 2d 190, 193; Baker v. Commissioner, 6 Cir., 115 F. 2d 987, 989.

Involved is the question of the credibility of the witnesses as to the taxpayers’ intentions, a question surely for the Tax Court.

See Paul, Dobson v. Commissioner: The Strange Ways of Law and Fact (1944), 57 Harv.L.Rev. 753, 822-831; Buckminster’s Estate v. Commissioner, 2 Cir., 1944, 147 F. 2d 331.


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