Opinion
Nos. 8979, 9014.
Argued December 7, 1945.
Decided March 18, 1946.
Appeal from Decision of Tax Court of the United States.
Petition by Elliott-Lewis Company and cross-petition by Commissioner of Internal Revenue to review a decision of the Tax Court of the United States redetermining a deficiency in the tax imposed by the Commissioner of Internal Revenue.
Decision affirmed.
C. Walter Randall, Jr., of Philadelphia, Pa. (Saul, Ewing, Remick Saul, of Philadelphia, Pa., on the brief), for taxpayer.
Eugene E. Beyer, of Washington, D.C., (Samuel O. Clark, Jr., Asst. Atty. Gen., and Sewall Key, J. Louis Monarch, and Muriel S. Paul, Sp. Assts. to Atty. Gen., on the brief), for the Commissioner.
Before BIGGS, GOODRICH, and McLAUGHLIN, Circuit Judges.
The question raised by the petition and cross-petition at bar is whether or not amounts paid on debentures issued by the taxpayer constitute deductible interest on "indebtedness". Both the taxpayer and the Commissioner contend that this court has the authority to review the decision of the Tax Court on this question asserting it to be one of law. But the scope of our review is delimited by the decisions of the Supreme Court in John Kelley Company v. Commissioner and Talbot Mills v. Commissioner, 66 S.Ct. 299, and this court lacks the authority to consider the question as one of law. Cf. Commissioner v. Scottish American Co., 323 U.S. 119, 65 S.Ct. 169, and Dobson v. Commissioner, 320 U.S. 489, 64 S.Ct. 239, 88 L.Ed. 248, with the decisions first cited.
The decision of the Tax Court is affirmed.