Haffenreffer Brewing Co. v. Commissioner of Internal Revenue‪.‬

This is a petition for review of a decision of the Board of Tax Appeals involving the surtax imposed on a personal holding company by Section 351 of the Revenue Act of 1934, 48 Stat. 751, 26 U.S.C.A. Int. Rev. Acts, page 757. The taxpayer in 1934 paid the sum of $86,400 out of its 1933 net income for the retirement of part of its outstanding preferred stock in accordance with the terms of a contract entered into in 1930, and deducted that sum from its undistributed net income as the retirement of indebtedness within the meaning of Section 351(b)(2)(B) The Commissioner of Internal Revenue disallowed the deduction, and the Board sustained the determination by the Commissioner of a surtax deficiency of $26,329.47 for the year 1934.