This court, on two occasions, stated its agreement with the Goodstein case. In Broome v. United States, 170 F. Supp. 613, 145 Ct.Cl. 298 (1959) and Oritt v. United States, 357 F.2d 692, 174 Ct.Cl. 1136 (1966), the court looked through the form of the transaction in order to determine the true substance. In both instances, the court found that where the transaction does not give rise to an actual indebtedness and there is no true obligation to pay interest, the alleged interest payments will not be deductible under section 23(b) of the 1939 Code (the predecessor to section 163(a) of the 1954 Code).

Ninth Circuit: Kaye v. Commissioner of Internal Revenue, 287 F.2d 40 (9th Cir. 1961), (Treasury bonds — § 23(b)); MacRae v. Commissioner of Internal Revenue, 294 F.2d 56 (9th Cir. 1961), cert denied, 368 U.S. 955, 82 S.Ct. 398, 7 L.Ed.2d 388 (1962), (Treasury notes and bonds — § 23(b)); Pierce v. Commissioner of Internal Revenue, 311 F.2d 894 (9th Cir. 1962), cert. denied, 373 U.S. 912, 83 S.Ct. 1302, 10 L.Ed.2d 413 (1963), (Annuity contract — § 163(a)); Cahn v. Commissioner of Internal Revenue, 358 F.2d 492 (9th Cir. 1966), (Treasury notes — § 163(a)); Williams v. Commissioner of Internal Revenue, 323 F.2d 656 (9th Cir. 1963). Court of Claims: Oritt v. United States, 357 F.2d 692, 174 Ct.Cl. 1136 (1966), (Treasury bonds — § 23(b)); Broome v. United States, 170 F. Supp. 613, 145 Ct.Cl. 298 (1959), (Treasury notes — § 23(b)). The Tax Court followed this trend and denied the interest deduction claimed by Brown.