Monarch Mfg. Co. v. Commissioner
United States Tax Court
The advent of the chain store and the building of modern highways brought about a change in merchandising as between manufacturers and consumers and necessitated a change from petitioner's established policy of selling its product only to wholesalers and jobbers, exclusive of Sears, Roebuck & Co. and Montgomery Ward & Co., to a policy of selling direct to retailers.
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The advent of the chain store and the building of modern highways brought about a change in merchandising as between manufacturers and consumers and necessitated a change from petitioner's established policy of selling its product only to wholesalers and jobbers, exclusive of Sears, Roebuck & Co. and Montgomery Ward & Co., to a policy of selling direct to retailers. Held, that such change in the merchandising of manufactured goods was a permanent rather than a temporary economic event bearing upon petitioner's business; and further, that petitioner has not shown that its earnings but for the…
1Opinion of the Court
OPINION.
Turner, Judge:
The petitioner concedes the correctness of respondent’s determination of its excess profits tax computed without the benefit of section 722 of the Internal Revenue Code, but contends that the tax so computed is excessive and discriminatory if section 722 (b) (2) 1 of the Code be applied.
It is to be noted that petitioner in reporting and paying its excess profits tax for the years here in question computed its excess profits credit on the basis of invested capital, its average base period net income being zero, and that respondent in his determination of the deficiency,…
2Cases cited6 opinions
- Lamar Creamery Co. v. CommissionerUnited States Tax Court · 1947
- Wisconsin Farmer Co. v. CommissionerUnited States Tax Court · 1950
- Irwin B. Schwabe Co. v. CommissionerUnited States Tax Court · 1949
- Stonhard Co. v. CommissionerUnited States Tax Court · 1949
- El Campo Rice Milling Co. v. CommissionerUnited States Tax Court · 1949
1 more not listed; retrieve them via the Exa API.
3Cited by10 opinions
- General Metalware Co. v. CommissionerUnited States Tax Court · 1951
- D. L. Auld Co. v. CommissionerUnited States Tax Court · 1952
- Miami Valley Coated Paper Co. v. CommissionerUnited States Tax Court · 1957
- R. W. Eldridge Co. v. CommissionerUnited States Tax Court · 1953
- D. L. Auld Co. v. CommissionerUnited States Tax Court · 1952
5 more not listed; retrieve them via the Exa API.