Wilbur Security Co. v. Commissioner

This timely petition for review of a decision of the Tax Court involves deficiencies in corporate taxpayer’s federal income tax for the years 1953, 1954 and 1955, in the amounts of $13,520.46, $17,-254.17 and $17,254.18, respectively. This court has jurisdiction. 26 U.S.C. § 7482 .

The sole question is whether the above amounts paid by the taxpayer to certain individuals constituted dividends and not deductible interest.

Concededly, this is a question of fact. The determination of such question of fact by the Tax Court is conclusive on us, unless the conclusion is clearly erroneous. Fed.R.Civ.P. 52(a), 28 U.S.C.A. E. g. Earle v. W. J. Jones & Son, 9 Cir., 1952, 200 F.2d 846 .

Here the evidence was conflicting as to whether the payments were in lieu of dividends or deductible interest. The argument made to this court, therefore, is of the kind usually and more appropriately made to the Tax Court. In our determination of the facts here present, as we have said so many times before, all conflicts must be resolved in

*659 favor of the respondent, and all legitimate and reasonable inferences indulged in to uphold the judgment, if possible. It is an elementary principle of law that…