East Texas Theatres, Inc. v. Commissioner
United States Tax Court
Petitioner, operator of a chain of motion picture theatres in Texas, seeks relief under section 722 of the Code. During the base period years petitioner acquired additional theatres, commenced the profitable sideline of selling candy and popcorn, and commenced to receive oil royalties.
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Petitioner, operator of a chain of motion picture theatres in Texas, seeks relief under section 722 of the Code. During the base period years petitioner acquired additional theatres, commenced the profitable sideline of selling candy and popcorn, and commenced to receive oil royalties. Held, petitioner qualifies for relief under section 722 (b) (4) of the Code; held, further, the facts fail to show that petitioner had abnormal income during the base period years which is excludible in determining petitioner's constructive average base period net income as respondent contends; held, further, a…
1Opinion of the Court
OPINION.
Black, Judge:
In order for the petitioner to be entitled to general relief from excess profits taxes as provided by section 722 of the Internal Revenue Code, it must satisfy the two requirements appearing in section 722 (a) of the Code. The general rule, as contained in section 722 (a), provides as follows:
* * * In any case in which the taxpayer [1] establishes that the tax computed under this subchapter (without the benefit of this section) results in an excessive and discriminatory tax and [2] establishes what would be a fair and just amount representing normal earnings to be used as…
2Cases cited5 opinions
- National Grinding Wheel Co. v. CommissionerUnited States Tax Court · 1947
- Victory Glass, Inc. v. CommissionerUnited States Tax Court · 1951
- Premier Products Co. v. CommissionerUnited States Tax Court · 1943
- Jefferson Amusement Co. v. CommissionerUnited States Tax Court · 1952
- Philadelphia, G. & N. R. Co. v. CommissionerUnited States Tax Court · 1946
3Cited by9 opinions
- Packer Pub. Co. v. Commissioner of Internal RevenueCourt of Appeals for the Eighth Circuit · 1954
- Pelton & Crane Co. v. CommissionerUnited States Tax Court · 1953
- Crowell-Collier Pub. Co. v. CommissionerUnited States Tax Court · 1956
- Southern California Edison Co. v. CommissionerUnited States Tax Court · 1953
- Crowell-Collier Pub. Co. v. CommissionerUnited States Tax Court · 1956
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