Glen Raven Mills, Inc. v. Commissioner
United States Tax Court
Glen Raven acquired substantially all of the stock of Asheville on May 12, 1964. Asheville was in serious financial trouble prior to the Glen Raven takeover, and it had suffered substantial net operating losses in 3 of 5 taxable years preceding 1964. Prior to the Glen Raven takeover, Asheville manufactured hosiery on its 26 full-fashioned knitting machines and 91 seamless knitting machines.
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Glen Raven acquired substantially all of the stock of Asheville on May 12, 1964. Asheville was in serious financial trouble prior to the Glen Raven takeover, and it had suffered substantial net operating losses in 3 of 5 taxable years preceding 1964. Prior to the Glen Raven takeover, Asheville manufactured hosiery on its 26 full-fashioned knitting machines and 91 seamless knitting machines. After the takeover Glen Raven converted Asheville's full-fashioned knitting machines for use in making flat fabric rather than hosiery. This flat fabric was used by Glen Raven in making crimped yarn.…
1Concurrence
Dawson J.,
concurring: I agree with the result reached in the majority opinion. In the first place, I think the majority’s application of the factors suggested by section. 1.882(a)-l(h) (5) of the regulations is correct. Secondly, I think the result reached is consistent with the line of liberal opinions by this Court. See Goodwyn Crockery Co., 87 T.C. 355, 362 (1961), affd. 315 F.2d 110 (C.A. 6, 1963) (“Under the wording of the section it would seem there could be some changes in the manner of conducting that trade or business and yet the business could remain ‘substantially the same.’ ”); E.…
2Cases cited10 opinions
- Commissioner of Internal Revenue v. Goodwyn Crockery CompanyCourt of Appeals for the Sixth Circuit · 1963
- J. G. Dudley Company, Incorporated (Formerly Headen Hosiery Mills, Incorporated) v. Commissioner of Internal RevenueCourt of Appeals for the Fourth Circuit · 1962
- Northern Trust Co. v. CommissionerUnited States Tax Court · 1986
- H. F. Ramsey Co. v. CommissionerUnited States Tax Court · 1965
- J. G. Dudley Co. v. CommissionerUnited States Tax Court · 1961
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