Equitable Life Assur. Soc’y v. Commissioner, 321 U.S. 560 (1944)

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Equitable Life Assurance Society v.


Commissioner of Internal Revenue
No. 492


Argued March 8, 9, 1944
Decided March 27, 1944
321 U.S. 560

CERTIORARI TO THE CIRCUIT COURT OF APPEALS
FOR THE SECOND CIRCUIT

Syllabus

1. Upon review of decisions of the Tax Court, it is not the function of the reviewing court to draw inferences from facts or to supplement stipulated facts. P. 563.

2. A decision of the Tax Court on review may be modified or reversed only if it is "not in accordance with law." P. 563.

3. "Interest" usually denotes an amount which one has contracted to pay for the use of borrowed money. P. 564.

4. Upon the record, "excess interest dividends" paid by the life insurance company were not, as a matter of law, "interest" within the meaning of § 203(a)(8) of the Revenue Act of 1932, and the Tax Court’s disallowance of their deduction as "interest on indebtedness" may not be set aside. P. 564.

5. Provisions of the Revenue Acts for deductions from taxes are to be strictly construed. P. 564.

137 F.2d 623 affirmed.

Certiorari, 320 U.S. 733, to review the affirmance of a decision of the Tax Court, 44 B.T.A. 293, disallowing taxpayer’s deduction of excess interest dividends.