WH Gunlocke Chair Co. v. Commissioner of Int. Rev.

Second Circuit

WH Gunlocke Chair Co. v. Commissioner of Int. Rev.

145 F.2d 791, 33 A.F.T.R. (P-H) 123, 1944 U.S. App. LEXIS 2656

CourtCourt of Appeals for the Second Circuit

DecidedNovember 16, 1944

Docket62

StatusPublished

Cited by10 cases

This text of 145 F.2d 791 (WH Gunlocke Chair Co. v. Commissioner of Int. Rev.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Second Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

WH Gunlocke Chair Co. v. Commissioner of Int. Rev., 145 F.2d 791, 33 A.F.T.R. (P-H) 123, 1944 U.S. App. LEXIS 2656 (2d Cir. 1944).

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Opinion

FRANK, Circuit Judge.

The Tax Court found that taxpayer’s earnings or profits were permitted to accumulate beyond the reasonable needs of the business. Under the express terms of § 102(c), this finding, if valid, created a presumption that the purpose of the accumulation was to avoid surtax upon the shareholders unless the taxpayer proved the contrary by a clear preponderance of the evidence. The Tax Court found that taxpayer had not done so. Both those findings constitute determinations of fact which, under the narrowest interpretation of Dobson v. Commissioner, 320 U.S. 489, 64 S.Ct. 239, we cannot disturb unless we consider them, as we do not, unsupported by substantial evidence. See Helvering v. National Grocery Co., 304 U.S. 282, 294, 58 S.Ct. 932, 82 L.Ed. 1346; Helvering v. Chicago Stockyards Co., 318 U.S. 693, 702, 63 S.Ct. 843, 87 L.Ed. 1086; Trico Products Corp. v. Commissioner, 2 Cir., 137 F.2d 424, 426, certiorari denied 320 U.S. 799, 64 S.Ct. 369.

Affirmed.

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FRANK, Circuit Judge.

The Tax Court found that taxpayer’s earnings or profits were permitted to accumulate beyond the reasonable needs of the business. Under the express terms of § 102(c), this finding, if valid, created a presumption that the purpose of the accumulation was to avoid surtax upon the shareholders unless the taxpayer proved the contrary by a clear preponderance of the evidence. The Tax Court found that taxpayer had not done so. Both those findings constitute determinations of fact which, under the narrowest interpretation of Dobson v. Commissioner, 320 U.S. 489, 64 S.Ct. 239, we cannot disturb unless we consider them, as we do not, unsupported by substantial evidence. See Helvering v. National Grocery Co., 304 U.S. 282, 294, 58 S.Ct. 932, 82 L.Ed. 1346; Helvering v. Chicago Stockyards Co., 318 U.S. 693, 702, 63 S.Ct. 843, 87 L.Ed. 1086; Trico Products Corp. v. Commissioner, 2 Cir., 137 F.2d 424, 426, certiorari denied 320 U.S. 799, 64 S.Ct. 369.

Affirmed.

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Bluebook (online)

145 F.2d 791, 33 A.F.T.R. (P-H) 123, 1944 U.S. App. LEXIS 2656, Counsel Stack Legal Research, https://law.counselstack.com/opinion/wh-gunlocke-chair-co-v-commissioner-of-int-rev-ca2-1944.

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