Rice, Barton & Fales, Inc. v. Commissioner
United States Board of Tax Appeals
1. The profit realized on a certain contract for the manufacture and sale of book-paper-making machines held to be taxable income in the year 1921. 2. Held, that the additional amount received on the sales price of a paper-making machine is taxable income in 1921, the year in which it was received.
1Opinion of the Court
*513OPINION. •
ARTindell:
The petitioner contends that the respondent erred in including in 1921 income the gain realized from the Mitsui contract because the regular practice of petitioner was to take up income in the year in which the goods manufactured under contract are accepted by the purchaser, which in this case it is claimed was in the year 1922. This practice it is argued is in accordance with that part of section 212(b) of the 1921 Act which provides that income shall be computed in accordance with the method regularly employe'd in keeping the books and subdivision (b) of article 36,…
2Cases cited2 opinions
- Pope v. AllisSupreme Court of the United States · 1885
- Morris v. Bradley Fertilizer Co.Court of Appeals for the Third Circuit · 1894
3Cited by1 opinion
- Rice, Barton & Fales, Inc. v. CommissionerUnited States Board of Tax Appeals · 1929