American Enka Corp. v. Commissioner
United States Tax Court
1. Accrual basis taxpayer may include section 722 refunds in determining its equity capital, within the meaning of section 437, I. R. C. 1939, when CABPNI'S are approved by the Executive Committee of the Excess Profits Tax Council, taxpayer having theretofore agreed to such CABPNI'S on Treasury Department Form EPC-1. 2. For income tax inclusion purposes, interest on above overassessments is not accruable until scheduled by Commissioner. 3. Provisions of Regulations 130,…
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1. Accrual basis taxpayer may include section 722 refunds in determining its equity capital, within the meaning of section 437, I. R. C. 1939, when CABPNI'S are approved by the Executive Committee of the Excess Profits Tax Council, taxpayer having theretofore agreed to such CABPNI'S on Treasury Department Form EPC-1. 2. For income tax inclusion purposes, interest on above overassessments is not accruable until scheduled by Commissioner. 3. Provisions of Regulations 130, section 40.437-5 (c) (2), requiring an accrual basis taxpayer to retroactively adjust earnings and profits -- upheld. 4.…
1Opinion of the Court
This proceeding involves deficiencies in income and excess profits tax for the calendar years 1950 and 1951 in the respective amounts of $358,416.35 and $300,641.42. The issues for decision are:
1. Whether petitioner, in determining its equity capital within the meaning of section 437 of the Internal Revenue Code of 1939, is entitled to accrue as assets as of the beginnings of the taxable, years 1950 and 1951, respectively, the amounts of overassessments plus interest attributable to section 722 excess profits tax relief for the years 1941-1945.
2. Whether interest on the above-mentioned…
2Cases cited17 opinions
- United States v. AndersonSupreme Court of the United States · 1926
- Spring City Foundry Co. v. CommissionerSupreme Court of the United States · 1934
- Security Flour Mills Co. v. CommissionerSupreme Court of the United States · 1944
- Dixie Pine Products Co. v. CommissionerSupreme Court of the United States · 1944
- Fawcus MacHine Co. v. United StatesSupreme Court of the United States · 1931
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3Cited by12 opinions
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- Ladish Company, a Corporation v. United StatesCourt of Appeals for the Seventh Circuit · 1962
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