American Well & Prospecting Co. v. Commissioner
United States Tax Court
Excess Profits Tax -- Credit Carry-Back -- Discontinuance by Sale -- Sec. 710 (c) (3). -- A corporation, on January 1, 1946, sold all of its assets to a related corporation which assumed all of the seller's obligations and liabilities. The seller ceased to operate a business but remained in existence to cooperate with the purchaser so that the latter might derive the benefit of certain contracts and claims that were unassignable.
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Excess Profits Tax -- Credit Carry-Back -- Discontinuance by Sale -- Sec. 710 (c) (3). -- A corporation, on January 1, 1946, sold all of its assets to a related corporation which assumed all of the seller's obligations and liabilities. The seller ceased to operate a business but remained in existence to cooperate with the purchaser so that the latter might derive the benefit of certain contracts and claims that were unassignable. The seller after 2 years again engaged in business activities, but they were unrelated to its original enterprise. Held, the selling corporation was not entitled to…
1Opinion of the Court
OPINION.
Murdock, Judge:
The Commissioner determined a deficiency of $64,047.43 in excess profits tax for the calendar year 1944. It arose from the disallowance of an unused excess profits credit carry-back from 1946.
All of the facts have been stipulated.
The petitioner, which was organized on May 13,1931, and is a Texas corporation, filed its tax returns for the years 1944, 1945, and 1946 with the collector of internal revenue for the twelfth district of Pennsylvania.
The petitioner was engaged in the business of manufacturing and selling oil well rotary drilling equipment and accessories and of…
2Cases cited5 opinions
- Weir Long Leaf Lumber Co. v. CommissionerUnited States Tax Court · 1947
- Wier Long Leaf Lumber Co. v. Commissioner of Internal RevenueCourt of Appeals for the Fifth Circuit · 1949
- Diamond A Cattle Co. v. CommissionerUnited States Tax Court · 1953
- Winter & Co. v. CommissionerUnited States Tax Court · 1949
- Wheeler Insulated Wire Co. v. CommissionerUnited States Tax Court · 1954
3Cited by2 opinions
- American Well & Prospecting Company v. Commissioner of Internal RevenueCourt of Appeals for the Third Circuit · 1956
- American Well & Prospecting Co. v. CommissionerUnited States Tax Court · 1954