Community Loan & Investment Corporation (Georgia) v. United States

Fifth Circuit

Community Loan & Investment Corporation (Georgia) v. United States

360 F.2d 690, 17 A.F.T.R.2d (RIA) 962, 1966 U.S. App. LEXIS 6165

Court of Appeals for the Fifth Circuit·Decided May 13, 1966·No. 22611·Published

Opinion

PER CURIAM:

The judgment of the trial court in this suit for refund of excess *691 profit taxes is affirmed. It is clear that the investment certificates issued by the taxpayer, a small loan company, to its borrowers, did not, when issued, nor did the payments made thereon, when made by the borrowers, represent “borrowed capital” as contemplated by the statute. With respect to the investment certificates issued to others than borrowers by the taxpayer, there was a lack of proof by the taxpayer of the need for the proceeds from such investment certificates “for the purposes of the business,” a necessary ingredient under Section 439 of the Internal Revenue Code of 1939.

Affirmed.

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PER CURIAM:

The judgment of the trial court in this suit for refund of excess *691 profit taxes is affirmed. It is clear that the investment certificates issued by the taxpayer, a small loan company, to its borrowers, did not, when issued, nor did the payments made thereon, when made by the borrowers, represent “borrowed capital” as contemplated by the statute. With respect to the investment certificates issued to others than borrowers by the taxpayer, there was a lack of proof by the taxpayer of the need for the proceeds from such investment certificates “for the purposes of the business,” a necessary ingredient under Section 439 of the Internal Revenue Code of 1939.

Affirmed.

Community Loan & Investment Corporation (Georgia) v. United States, 360 F.2d 690, 17 A.F.T.R.2d (RIA) 962, 1966 U.S. App. LEXIS 6165 (5th Cir. 1966).

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