Crane-Johnson Co. v. Helvering, 311 U.S. 54 (1940)
Case details
Bluebook Citation
Crane-Johnson Co. v. Helvering, 311 U.S. 54 (1940)
Full caption
CRANE-JOHNSON COMPANY v. HELVERING, COMMISSIONER OF INTERNAL REVENUE.
Country
United States
Jurisdiction
Federal
Court
Supreme Court of the United States
Decided
Nov. 12, 1940
CRANE-JOHNSON COMPANY v. HELVERING, COMMISSIONER OF INTERNAL REVENUE.
CERTIORARI TO THE CIRCUIT COURT OF APPEALS FOR THE EIGHTH CIRCUIT.
No. 8. Argued October 23, 1940.—Decided November 12, 1940.
Decided ôn the authority of Helvering v. Northwest Steel Rolling Mills, ante, p. 46. 105 F. 2d 740, affirmed.
Certi orar i, 309 U. S. 692, to review the affirmance of a decision of the Board of Tax Appeals, 38 B. T. A. 1355, which sustained the Commissioner’s determination of a tax deficiency.
Mr. John E. Hughes for petitioner.
Mr. Richard H. Demuth, with whom Solicitor General Biddle, Assistant Attorney General Clark, and Mr. Sewall Key and Miss Helen R. Carloss were on the brief, for respondent.
By leave of Court, Mr. Thomas H. Remington filed a brief on behalf of Bastian Brothers Company, as amicus curiae, in support of petitioner.
Mr . Just ice Black delivered the opinion of the Court.
Because of a previously existing deficit, petitioner corporation was prohibited by state law1 from distributing as dividends its profits earned in 1936. Notwithstanding this state prohibition, the Commissioner held respondent liable under the 1936 Revenue Act12 for surtax on undistributed profits. The Board of Tax Appeals sustained p. 55the Commissioner,3 and the Circuit Court of Appeals affirmed.4 On a similar state of facts the Court of Appeals for the Ninth Circuit held undistributed profits exempt from surtax.5 We granted certiorari in both cases to resolve this conflict.6 The legal questions here presented are in all respects the same as those presented in Helvering v. Northwest Steel Rolling Mills, ante, p. 46, and on the authority of that case the decision below is
1
“The directors of corporations must not make dividends except from the surplus profits arising from the business thereof ...” N. D. Comp. Laws (Supp. 1925) § 4543.
2
49 Stat. 1648, 1655. of an appeal to Congress for relief but not to the courts. P. 59.
Affirmed.
3
The judgment of the Circuit Court of Appeals affirming the decision of the Board of Tax Appeals in this case was correct and must be sustained whether or not the court gave a wrong reason for its action. P. 59. 110 F. 2d 655, affirmed. 8 38 B. T. A. 1355. 4105 F. 2d 740. 8 Northwest Steel Rolling Mills v. Commissioner, 110 F. 2d 286. 8 309 U. S. 692; post, p. 629.