Alexandria Amusement Corp. v. Commissioner
United States Tax Court
1. The petitioner's business consisted of the operation of motion picture theatres in Alexandria, Virginia. Petitioner had only two theatres prior to April 7, 1937. On that date it opened a third theatre. This theatre was modern and well furnished and almost doubled the combined seating capacity.
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1. The petitioner's business consisted of the operation of motion picture theatres in Alexandria, Virginia. Petitioner had only two theatres prior to April 7, 1937. On that date it opened a third theatre. This theatre was modern and well furnished and almost doubled the combined seating capacity. Petitioner's net income increased with the opening of the third theatre and continued to do so (as did the population of Alexandria) through the base period and the taxable years of 1942, 1943, and 1944. Petitioner contends that the opening of the third theatre constituted a change in the capacity of…
1Opinion of the Court
OPINION.
Van Fossan, Judge:
The question in this case is whether petitioner is entitled to any relief under section 722 (b) (4) or (b) (5) of the Internal Revenue Code.1
The petitioner corporation was organized in 1929. Its business then consisted of the operation of two small and rather obsolete the-atres in Alexandria, Virginia. In 1937 it opened a third .theatre, the Reed, in Alexandria. This new theatre almost doubled the combined seating capacity of petitioner’s theatres.
The petitioner contends that the opening of the Reed on April 5, 1937, constituted a change in the capacity of the…
2Cases cited2 opinions
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