Thorsen

Review is sought of a decision of the Board of Tax Appeals, affirming, except with respect to a concededly erroneous computation, a determination by the Commissioner of Internal Revenue of the deficiency in petitioner’s 1923 income taxes. Petitioner asserts that there was no deficiency.

The sole question is how much of the dividend received by petitioner as a stockholder in the West Side Lumber Company on April 14, 1923, was a “distribution ** * * out of * * * earnings or profits accumulated since February 28,1913, * * * ” and therefore taxable; and how much a distribution out of “earnings or profits accumulated * * * prior to March 1,1913,” and therefore exempt. The case is governed by the Revenue Act of 1921; the applicable provisions are set out in the margin.

Petitioner’s ease before the Board was consolidated with that of Canfield, another stockholder in the lumber company, as to whom the same issue was presented. In so far as the decision affected Canfield, it was reversed in Canfield v. Commissioner, 62 F. (2d) 751 (C. C. A. 7,1933). For the detailed facts with respect to the corporate financial situation, stipulated there as here, we refer to the statement in that…