Opinion
Nos. 8099, 8100.
March 10, 1943.
Petitions for Review of Decisions of the Tax Court of the United States.
Petition by Jos. Schlitz Brewing Company and petition by the Journal Company to review decisions of the United States Tax Court sustaining deficiency income tax assessment determined by the Commissioner of Internal Revenue.
Decisions reversed and causes remanded with directions.
George D. Spohn, John S. Best, Edmund B. Shea, and Carl F. Mikkelson, all of Milwaukee, Wis. (Lecher, Michael, Whyte Spohn, of Milwaukee, of counsel), for petitioners.
Samuel O. Clark, Jr., Sewall Key, J. Louis Monarch, and Arthur A. Armstrong, Asst. Attys. Gen., and J.P. Wenchel, John M. Morawski, and John W. Smith, Bureau of Internal Revenue, all of Washington, D.C., for respondent.
Before EVANS, SPARKS, and MAJOR, Circuit Judges.
These two petitions to review decisions of the United States Tax Court present the same issue. That issue is the right of the corporate taxpayers to include in their respective dividends paid credits for the year 1938, pursuant to § 27(a)(4) of the Revenue Act of that year, 26 U.S.C.A. Int.Rev. Acts, page 1021, the amount paid to redeem certain notes given for dividends in the preceding year, 1937, the face value of which had been credited as dividends paid in that year, pursuant to § 27(d) of the Act of 1936, 26 U.S.C.A. Int.Rev. Acts, page 837.
The question here raised has been answered in favor of the taxpayers in the case of Helvering v. Sabine Transportation Co., 63 S.Ct. 569, 87 L.Ed. ___, decided by the Supreme Court, March 1, 1943. Hence the decisions of the Tax Court which denied the credits claimed by petitioners must be, and they are, hereby reversed on the authority of the Sabine case, and the two causes are remanded to the Tax Court for further proceedings in conformity therewith.