United States Supreme Court Cases & Opinions

U.S. Supreme Court

Helvering v. Taylor, 293 U.S. 507 (1935)

Helvering v. Taylor

No. 289

Argued December 7, 1934

Decided January 7, 1935

293 U.S. 507

Syllabus

1. In review by certiorari, the Court is not called upon to consider any question not raised by the petition for the writ. P. 293 U. S. 511.

2. Where a taxpayer shows before the Board of Tax Appeals that a tax is arbitrarily assessed and excessive, his relief from payment of it is not conditional upon his showing also the correct amount of tax or that none was assessable. Section 274(e), Revenue Act of 1926, and §§ 51(a) and 54(a), Revenue Act of 1928, considered. P. 293 U. S. 512.

3. The evidence before the Board of Tax Appeals showed that a tax on income derived from sale of preferred stock which had been acquired at the same time as common stock of the same corporation

Page 293 U. S. 508

was excessive, and based on an arbitrary apportionment of cost as between the two kinds of stock. Held, (1) that the Board should not have sustained the tax but, on appropriate application, should have heard evidence to show whether a fair apportionment might be made, and, if so, the correct amount of the tax, and (2) that the Circuit Court of Appeals, in reversing the Board's decision sustaining the tax, rightly remanded the case for such further proceedings. P. 293 U. S. 516.

70 F.2d 619 affirmed.

Certiorari to review a judgment reversing a decision of the Board of Tax Appeals which sustained a deficiency income tax assessment.