Barth Smelting Corp. v. Commissioner
United States Tax Court
Held, the petitioner is not entitled to section 722 (b) (4), I. R. C. 1939, relief. The petitioner has not shown that its average base period net income was inadequate as a result of its commencing business during the base period.
Read the full summary
Held, the petitioner is not entitled to section 722 (b) (4), I. R. C. 1939, relief. The petitioner has not shown that its average base period net income was inadequate as a result of its commencing business during the base period. Furthermore, the purchase of a new plant in 1941 by a corporation newly incorporated in 1941, with the same stockholders as petitioner, is not, within the meaning of section 722 (b) (4), the consummation of a plan by the petitioner to which said petitioner had been committed prior to January 1, 1940.
1Opinion of the Court
Mulroney, Judge:
The respondent disallowed petitioner’s claims for relief from excess profits tax under sections 722 (a) and 722 (b) (4) of the Internal Revenue Code of 1939 for the fiscal years ended September 30, 1942 through 1946. The excess profits taxes involved are as follows:
Taxable year ended September SO Excess profits tax
1942 _ $838.33
1943 _126,215. 51
1944 _ 225, 308. 27
1945 _ 84,521.55
1946 _1_ 12,504.08
Included in these amounts are the deficiencies in excess profits tax determined by the respondent in' his notice of disallowance under date of April 25, 1951, in the amounts of…
2Cases cited6 opinions
- Blum Folding Paper Box Co. v. CommissionerUnited States Tax Court · 1945
- Irwin B. Schwabe Co. v. CommissionerUnited States Tax Court · 1949
- Stonhard Co. v. CommissionerUnited States Tax Court · 1949
- Pabst Air Conditioning Corp. v. CommissionerUnited States Tax Court · 1950
- Robinson Terminal Warehouse Corp. v. CommissionerUnited States Tax Court · 1953
1 more not listed; retrieve them via the Exa API.
3Cited by5 opinions
- Simplicity Mfg. Co. v. CommissionerUnited States Tax Court · 1960
- Connecticut Light & Power Co. v. CommissionerUnited States Tax Court · 1963
- Barth Smelting Corp. v. CommissionerUnited States Tax Court · 1958
- Connecticut Light & Power Co. v. CommissionerUnited States Tax Court · 1963
- Connecticut Light & Power Co. v. CommissionerUnited States Tax Court · 1963