17 B.T.A. 976 | B.T.A. | 1929
Lead Opinion
The petitioner contends that the respondent erred in disallowing a deduction of $2,752.95 claimed in his 1921 return as ordinary and necessary expenses of drilling oil wells. About ninety-six of the petitioner’s checks, all dated 1921, were admitted in evidence in connection with the petitioner’s testimony taken on depositions. A number of these checks are made to cash and a number are made to various individuals. The petitioner did not testify in .detail in regard to each check, but simply testified in general terms that either the checks or the money which he had received on the checks was spent for hotel bills, meals, oil and gasoline and other- “ necessary expenses.” We do not know how much- he spent
The petitioner further contends that the respondent erred in including an amount of $32,900 in his income of the year 1921 instead of in that of the year 1922. He used a cash receipts and disbursements method of reporting his income and actually received $32,000 of this amount in 1922.. There is no evidence as to when the difference of $900 was received and the determination of the respondent, as to that amount, must be upheld.
Section 201(e) of the Revenue Act of 1921 provides:
For the purposes of this Act, a taxable distribution made by a corporation to its shareholders or members shall be included in the gross income of the distributees as of the date when the cash or other property is unqualifiedly made subject to their demands.
The evidence discloses that in 1921, and after February 16 of that year, the board of directors of the Hiram Oil & Gas Co. passed a resolution declaring a 10 per cent dividend on all stock on record May 1, 1921. The evidence does not disclose whether or not a date
Reviewed by the Board.
Judgment will be entered for the respondent.