Triangle Raincoat Co. v. Commissioner
United States Tax Court
1. Petitioner, a manufacturer of raincoats, snow suits, reversible topcoats, and similar garments, filed claims for relief under section 722 (a) and 722 (b) (1) and (4) for the taxable years 1941, 1942, and 1943. During August 1936, a strike occurred in petitioner's plant which interrupted production but did not prevent the calendar year 1936 from being petitioner's most profitable and productive year from 1927 through 1939. Held, the strike did not cause petitioner's…
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1. Petitioner, a manufacturer of raincoats, snow suits, reversible topcoats, and similar garments, filed claims for relief under section 722 (a) and 722 (b) (1) and (4) for the taxable years 1941, 1942, and 1943. During August 1936, a strike occurred in petitioner's plant which interrupted production but did not prevent the calendar year 1936 from being petitioner's most profitable and productive year from 1927 through 1939. Held, the strike did not cause petitioner's average base period net income to become an inadequate standard of normal earnings within the meaning of section 722 (b) (1),…
1Opinion of the Court
OPINION.
Rice, Judge:
In determining petitioner’s excess profits tax liability for the taxable years 1941, 1942, and 1943, respondent computed petitioner’s excess profits credit on the invested capital method as provided in section 714 of the Code because that method resulted in a larger credit than a computation on the income method under section 713 of the Code. Our findings show that the credit used by respondent for each taxable year exceeded $12,000, whereas petitioner’s actual average base period net income, as reported, amounted to only $7,157.87, and if computed under section 713 (e)…
2Cases cited9 opinions
- Lamar Creamery Co. v. CommissionerUnited States Tax Court · 1947
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3Cited by30 opinions
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- Davenport Hosiery Mills, Inc. v. CommissionerUnited States Tax Court · 1957
- Robertson Factories, Inc. v. CommissionerUnited States Tax Court · 1959
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