Walter Motor Truck Co. v. Commissioner
United States Tax Court
Petitioner accrued and deducted from its income for the year ended June 30, 1940, interest of $ 8,627.03 paid on a Federal income tax deficiency. In computing its excess profits credit for the fiscal year ended June 30, 1945, petitioner restored $ 8,175.60 of that interest payment to its income for fiscal 1940 under the provisions of section 711 (b) (1) (J) (ii), Internal Revenue Code.
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Petitioner accrued and deducted from its income for the year ended June 30, 1940, interest of $ 8,627.03 paid on a Federal income tax deficiency. In computing its excess profits credit for the fiscal year ended June 30, 1945, petitioner restored $ 8,175.60 of that interest payment to its income for fiscal 1940 under the provisions of section 711 (b) (1) (J) (ii), Internal Revenue Code. Held, because of the limiting provisions of section 711 (b) (1) (K) (iii), petitioner may not restore any part of that interest payment to income for fiscal 1940 because it was of the same class of deduction…
1Opinion of the Court
OPINION.
Hill, Judge:
The respondent determined a deficiency in petitioner’s excess profits tax for the year ended June 30, 1945, in the amount of $4,565.42. The sole question for determination is whether the respondent erred in refusing to disallow as an abnormal deduction within the meaning of sections 711 (b) (1) (J) (ii) and7ll (b) (1) (K) (iii) the amount of interest paid by petitioner on a Federal income tax •deficiency for its fiscal year ended June 30,1940.
The facts have been stipulated and they are so found.
Petitioner is a corporation organized and existing by virtue of the laws of the…
2Cases cited2 opinions
- Arrow-Hart & Hegeman Electric Co. v. CommissionerUnited States Tax Court · 1946
- Frank Shepard Co. v. CommissionerUnited States Tax Court · 1947
3Cited by3 opinions
- Northern States Power Co. v. CommissionerUnited States Tax Court · 1952
- Northern States Power Co. v. CommissionerUnited States Tax Court · 1952
- Walter Motor Truck Co. v. CommissionerUnited States Tax Court · 1951