Penn Mutual Life Ins. Co. v. Lederer, 252 U.S. 523 (1920)

Penn Mutual Life Insurance Company v. Lederer


No. 499


Argued March 22, 23, 1920
Decided April 19, 1920
252 U.S. 523

CERTIORARI TO THE CIRCUIT COURT OF APPEALS
FOR THE THIRD CIRCUIT

Syllabus

The Income Tax Law of October 3, 113, c. 16, 38 Stat. 172, § II G.(b), provides that life insurance companies

shall not include as income in any year such portion of any actual premium received from any individual policyholder as shall have been paid back or credited to such individual policyholder, or treated as an abatement of premium of such individual policyholder, within such year,

and that "there be deducted from gross income . . . the sums other than dividends paid within the year on policy and annuity contracts." Held that money derived by a mutual company from redundancy of premiums paid in previous year, and paid to policyholders during the tax year as dividends in cash, not applied in abatement or reduction of their current premiums, should not be deducted from premium receipts in computing gross income. P. 527.

No aid in construing an act of Congress can be derived from the legislative history of another passed six years later. P. 537.

258 F. 81 affirmed.

The case is stated in the opinion.