Koshland v. Helvering,
298 U.S. 441 (1936)

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U.S. Supreme Court

Koshland v. Helvering, 298 U.S. 441 (1936)

Koshland v. Helvering

No. 774

Argued May 1, 1936

Decided May 18, 1936

298 U.S. 441


1. Common voting shares of a corporation received by the holder of cumulative preferred shares as a dividend held income, and not to be treated as returns of capital. P. 298 U. S. 443.

Therefore, upon a subsequent sale or other disposition of the preferred shares, no part of their original cost is to be apportioned to such common shares for the purpose of determining the gain or loss from such disposition.

2. An administrative construction, the effect of which is to convert an income tax imposed by a statute into a capital levy, cannot be adopted. P. 298 U. S. 445.

3. Where the provisions of an Act are unambiguous and its directions specific, there is no power to amend it by regulations. P. 298 U. S. 446.

81 F.2d 641 reversed.

Review by certiorari, 297 U.S. 702, of a judgment reversing a decision of the Board of Tax Appeals, 33 B.T.A. 634, and approving the action of the Commissioner of Internal Revenue in increasing an income tax assessment.

Page 298 U. S. 442

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