Amalgamated Sugar Co. v. Commissioner
United States Board of Tax Appeals
1. The consistent accounting practice of a seller of fungible goods to accrue the price fixed by its sales contracts as income in the year of the contract, when the evidence shows that all parties in the trade regard title to the goods as passing at that time and not at the time of later delivery and payment, held correctly to reflect income. 2. The significance of a form of contract as part of a system of carrying on business may be determined by reference to the usages by…
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1. The consistent accounting practice of a seller of fungible goods to accrue the price fixed by its sales contracts as income in the year of the contract, when the evidence shows that all parties in the trade regard title to the goods as passing at that time and not at the time of later delivery and payment, held correctly to reflect income. 2. The significance of a form of contract as part of a system of carrying on business may be determined by reference to the usages by which its terms are commonly understood and interpreted by the parties themselves, and evidence of such usages held…
1Opinion of the Court
*574OPINION.
Steknhagen: The Commissioner has conceded that the petitioner has paid the amounts of taxes set forth in our findings and that adjustment of the deficiency will be made accordingly. He also confesses error as to the basis of depreciation. To these two issues originally raised by the pleadings we need give no further attention.
The third point of the petitioner is that invested capital has been reduced by taking from the opening surplus the tax for the year just closed and by taking from earnings available for dividends the estimated tax for the current year. Since the hearing the law,…
2Cases cited5 opinions
- Hatch v. Oil Co.Supreme Court of the United States · 1879
- Kimberly v. . PatchinNew York Court of Appeals · 1859
- Mackellar v. PillsburySupreme Court of Minnesota · 1892
- Gourd v. . HealyNew York Court of Appeals · 1912
- Roberts v. TuttleUtah Supreme Court · 1909
3Cited by2 opinions
- Amalgamated Sugar Co. v. CommissionerUnited States Board of Tax Appeals · 1926
- White Oak Transp. Co. v. CommissionerUnited States Board of Tax Appeals · 1931