Bishop Babcock Mfg. v. C.I.R

1 Citing case

  1. Monarch Theatres v. Helvering

    137 F.2d 588 (2d Cir. 1943)   Cited 6 times

    The resolutions of September 4th, 1933, stand on a different footing. It is true that a number of circuit courts of appeal have declared that a charter provision, a by-law, a share certificate, or a corporation resolution will not be regarded as a contract within the section. Atlas Supply Co. v. Commissioner, 10 Cir., 123 F.2d 356; Caroline Mills v. Commissioner, 5 Cir., 126 F.2d 857; Metal Specialty Co. v. Commissioner, 6 Cir., 128 F.2d 259; Mastin Realty Mining Co. v. Commissioner, 8 Cir., 130 F.2d 1003; Bishop Babcock Manufacturing Co. v. Commissioner, 6 Cir., 131 F.2d 222; Elliott Addressing Machine Co. v. Commissioner, 1 Cir., 131 F.2d 700. And while it is possible to distinguish nearly all of these decisions upon the facts, they did not go upon any such distinction, or mean to limit the generality of what they said. The Third Circuit in Lehigh Structural Steel Co. v. Commissioner, 127 F.2d 67, did hold that a provision in the share certificates and the charter made for the protection of a group of shareholders who acted in reliance upon it, would protect the corporation under ยง 26(c)(1); but it stands alone.