Commissioner v. Snite’s Empirical Analysis
177 F.2d 819 · 1949
Citation profile
36 federal appellate · 1 district ·
Relationships
Applies 26 U.S.C. § 112 · 26 U.S.C. § 115 · 26 U.S.C. § 22
Relies on Commissioner of Internal Revenue v. Bedford's Estate · Bazley v. Commissioner · Flanagan v. Helvering · Kirschenbaum v. Commissioner of Internal Revenue · Hirsch v. Commissioner
Most-quoted passages
The sentences later courts lift from this opinion, ranked by how many decisions quote each — the parts of the opinion doing the work. These counts are smaller than the citation total above because most of the 59 citing decisions cite the case generally; a passage count includes only decisions quoting that exact language verbatim.
“(1) In general. — If a corporation cancels or redeems Its stock (whether or not such stock was issued as a stock dividend), at such time and in such manner as to make the distribution and cancellation or redemption in whole or in part essentially equivalent to the distribution of a taxable dividend, the amount so distributed in redemption or cancellation of the stock, to the extent that it represents a distribution of earnings or profits accumulated after February 28, 1913, shall be treated as a taxable dividend.”
2 later decisions quote this exact passage · from the majority“Respondent insists it is now established law that the net effect of the transaction, rather than the motives and purposes of the corporation or its stockholders, is the test of taxability. It must be recognized that the net effect rationale inheres in a number of decisions. [Citations.] But all that this means is that no one factor is controlling. It surely does not mean that the mere existence of sufficient earnings and profits to cover the acquisition of the stock automatically brings tbe transaction witbin the provisions of section 115 (g). If that were so, it would seem that practically no room would be left for the operation of the provisions of section 115 (c),[ 1 ] relating to distributions in partial liquidation. * * * All relevant factors must be considered in determining the net effect of the transaction.”
1 later decision quote this exact passage · from the majority““ * * * Redemption in this section, we believe, connotes something other than repurchase; it includes the idea of a surrender of shares by a stockholder and a retirement of that which he surrenders. * * * These taxpayers did not surrender their stock but sold it. They did not contemplate retirement of their shares and the corporation did not retire them. Rather it placed them in its treasury, as live assets to be disposed of as it should thereafter determine. * * * ””
1 later decision quote this exact passage · from the majority
How this case has been treated — in progress
Whether each later court followed, distinguished, criticized, or overruled this decision. The treatment classification (task #35) runs highest-cited cases first and lights up here as it reaches this one.