Crossfield Products Corp. v. Commissioner
United States Tax Court
Petitioner, a corporation required to compute excess profits on the invested capital basis without the benefit of section 722, produced and sold, under an exclusive license, a product marketed under the name of Dex-O-Tex and had exclusive rights for the sale of chain ladders in limited territory. Licenses for production and sale of Dex-O-Tex were held by two other corporations from 1938 until 1942 when petitioner acquired the right.
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Petitioner, a corporation required to compute excess profits on the invested capital basis without the benefit of section 722, produced and sold, under an exclusive license, a product marketed under the name of Dex-O-Tex and had exclusive rights for the sale of chain ladders in limited territory. Licenses for production and sale of Dex-O-Tex were held by two other corporations from 1938 until 1942 when petitioner acquired the right. The prior licensees sustained operating losses in 1938, 1939, and 1940. Restrictions on the use of rubber, an ingredient of Dex-O-Tex, restricted normal…
1Opinion of the Court
OPINION.
Arundell, Judge:
The petitioner was organized in 1942 and was required to compute its excess profits tax credit based on invested capital. Section 712 (a), Internal Revenue Code. Petitioner alleged that the credit so computed was an inadequate standard for determining excess profits because of the existence of factors set forth in section 722 (c) (1), (2), and (3) of the Code.1 The parties stipulated that petitioner meets the requirements of (1) and (3).
To establish eligibility under (2), petitioner relies entirely upon the branch of its business from the operation of which it realized…
2Cases cited7 opinions
- Wisconsin Farmer Co. v. CommissionerUnited States Tax Court · 1950
- 7-Up Ft. Worth Co. v. CommissionerUnited States Tax Court · 1947
- Danco Co. v. CommissionerUnited States Tax Court · 1950
- Victory Glass, Inc. v. CommissionerUnited States Tax Court · 1951
- General Metalware Co. v. CommissionerUnited States Tax Court · 1951
2 more not listed; retrieve them via the Exa API.
3Cited by1 opinion
- Crossfield Products Corp. v. CommissionerUnited States Tax Court · 1953