Dumari Textile Co. v. Commissioner
United States Board of Tax Appeals
Pursuant to section 602 of the Revenue Act of 1936, petitioner, which was on an accrual basis, was reimbursed in 1938 for the processing tax burden borne by it on account of the floor stock tax. Held, the payment received by petitioner in 1938 accrued in 1936, because the right to the payment ripened when the statute authorizing it was enacted. Continental Tie & Lumber Co. v. United States,286 U.S. 290.
1Opinion of the Court
*643OPINION.
Van Fossan:
This proceeding raises the issue whether payments made under section 602 of the Revenue Act of 19361 were income'accruing in 1936 when this section was enacted, or in the year when the payments were actually received by the taxpayer. Petitioner contends that because it was on an accrual basis the payments it received under this section were income in 1936. Respondent, on the other hand, argues that the payments were income in 1938 since they were not determined to be due petitioner until that year.
Income accrues to a taxpayer on an accrual basis when the right to receive…
2Cases cited4 opinions
- United States v. AndersonSupreme Court of the United States · 1926
- Spring City Foundry Co. v. CommissionerSupreme Court of the United States · 1934
- Continental Tie & Lumber Co. v. United StatesSupreme Court of the United States · 1932
- Butte, Anaconda & Pacific Ry. Co. v. United StatesSupreme Court of the United States · 1933
3Cited by6 opinions
- Food Machinery & Chemical Corp. v. United StatesUnited States Court of Claims · 1960
- H. J. Heinz Co. v. GrangerDistrict Court, W.D. Pennsylvania · 1956
- Dumari Textile Co. v. CommissionerUnited States Board of Tax Appeals · 1942
- Food MacHinery and Chemical Corporation, a Corporation v. United StatesUnited States Court of Claims · 1961
- Food MacHinery and Chemical Corporation, a Corporation v. United StatesUnited States Court of Claims · 1961
1 more not listed; retrieve them via the Exa API.