Hemenway-Johnson Furniture Co. v. Commissioner
United States Tax Court
Petitioner held entitled to relief under section 722 (b) (4), Internal Revenue Code, by reason of a change in the character of its business during the base period years. A constructive average base period net income is determined from the record.
1Opinion of the Court
OPINION.
Withey, Judge,:
It is conceded that the petitioner’s acquisition of certain of the assets, plus the store location of Johnson, and the opening of three branch stores during the base period years, represents changes in capacity for operation within the import of section 722 (b) (4) of the Internal Eevenue Code.1 It is therefore unnecessary for us to consider the section 722 (b) (2) factor alleged by petitioner as a ground for relief as it is an alternative qualifying factor under the statute; and, since petitioner has qualified on the ground that it changed its capacity for operation,…
2Cases cited2 opinions
- Victory Glass, Inc. v. CommissionerUnited States Tax Court · 1951
- Danco Co. v. CommissionerUnited States Tax Court · 1952
3Cited by1 opinion
- Hemenway-Johnson Furniture Co. v. CommissionerUnited States Tax Court · 1954