Frank H. Fleer Corp. v. Commissioner
United States Tax Court
1. Abnormality -- Class -- Section 711 (b) (1) (J) (i), I. R. C. -- Excise taxes on chewing gum imposed during part of base period but not during taxable year, held not an abnormal class of deduction. 2. Id. -- A bad debt which resulted, not from transactions with customers or from advances for goods, but from a transaction not directly connected with the business, held abnormal as to class. 3. Abnormality -- Amount -- Section 711 (b) (1) (J) (ii). -- Sales promotion…
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1. Abnormality -- Class -- Section 711 (b) (1) (J) (i), I. R. C. -- Excise taxes on chewing gum imposed during part of base period but not during taxable year, held not an abnormal class of deduction. 2. Id. -- A bad debt which resulted, not from transactions with customers or from advances for goods, but from a transaction not directly connected with the business, held abnormal as to class. 3. Abnormality -- Amount -- Section 711 (b) (1) (J) (ii). -- Sales promotion expenses held not separable in this case from other sales expenses for the purpose of section 711 (b) (1) (J) (ii).
1Opinion of the Court
OPINION.
MuRDOck, Judge-.
The petitioner first contends that excise taxes which it paid during the base years 1936,1937, and 1938 were abnormal in class within the meaning of section 711 (b) (1) (J) (i) of the Internal Eevenue Code and should be disallowed as deductions for those years in computing its excess profits credit. The provision in question is a remedial one, which should be construed reasonably to give the relief intended. Green Bay Lumber Co., 3 T. C. 824, 830. The petitioner paid excise taxes during the years 1932 through 1938, but apparently paid no other taxes of that type at any…
2Cases cited3 opinions
- Green Bay Lumber Co. v. CommissionerUnited States Tax Court · 1944
- City Auto Stamping Co. v. CommissionerUnited States Tax Court · 1946
- Frank Shepard Co. v. CommissionerUnited States Tax Court · 1947
3Cited by1 opinion
- Frank H. Fleer Corp. v. CommissionerUnited States Tax Court · 1948