Lamberth

This is a petition by taxpayer for review of a decision of the Board of Tax Appeals sustaining a determination by the Commissioner of a deficiency of $132.11 in taxpayer’s 1933 income taxes, and denying taxpayer’s prayer that it be determined that he overpaid his 1933 income tax in the sum of $365.84.

The facts as found by the Board are not challenged by either party, and may be briefly outlined as follows:

On July 19, 1930, the taxpayer and his wife owned as community property, 3,334 shares of Class B Optional Series Common Stock [hereinafter referred to as Class B Common stock] of Interstate Cotton Industries, Inc., a Delaware corporation. The certificate of incorporation as of July 19, 1930, provided that all dividends declared upon Class B common stock should be paid by the issue of preferred stock of the corporation unless the holder of any share or shares of such stock should elect to receive any such dividend in cash and should notify the corporation of that election, in accordance with the requirement of the by-laws, in which event the dividend on such shares should be payable in cash. We are not advised as to the provisions of the by-laws of the corporation regarding…