Standard Refractories Co. v. Commissioner
United States Board of Tax Appeals
1. Under section 234(a)(8) of the Revenue Act of 1918, a taxpayer is entitled to a deduction for amortization on facilities acquired on or after April 6, 1917, for the production of articles contributing to the prosecution of the war, notwithstanding some or all of such facilities may have been contracted for prior to that date or may have been acquired pursuant to a plan of expansion determined upon and entered into prior to that date.
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1. Under section 234(a)(8) of the Revenue Act of 1918, a taxpayer is entitled to a deduction for amortization on facilities acquired on or after April 6, 1917, for the production of articles contributing to the prosecution of the war, notwithstanding some or all of such facilities may have been contracted for prior to that date or may have been acquired pursuant to a plan of expansion determined upon and entered into prior to that date. Appeal of Manville Jenckes Co.,4 B.T.A. 765. 2. In determining the deduction to which the taxpayer is entitled on amortizable facilities which were continued…
1Opinion of the Court
*31OPINION.
Giucen :
The Standard Refractories Co. contends that it is entitled to a deduction under the provisions of section 234 (a) (8) of the Revenue Act of 1918, which provides for the deduction of a reasonable allowance for the amortization of facilities constructed, erected, installed, or acquired, on or after April 6, 1917, for the production of articles contributing to prosecution of war against the German government. The Commissioner bases the disallowance of this deduction upon three grounds;(1) The petitioner was not actively engaged in the manufacture of articles which contributed…
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- Standard Refractories Co. v. CommissionerUnited States Board of Tax Appeals · 1927