Gibson Products Co. v. Commissioner
United States Tax Court
1. During 1936-1938 the petitioner failed to report alleged manufacture of hair oil and pay excise taxes thereon, and when assessed for such taxes in 1942, and thereafter, it contended that it had not manufactured. Tax was paid in 1943 and judgment went against the petitioner in a suit for refund. Deduction for taxes in 1943 allowed. 2. Deduction of expense of operating airplane while petitioner's president was learning to fly, denied.
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1. During 1936-1938 the petitioner failed to report alleged manufacture of hair oil and pay excise taxes thereon, and when assessed for such taxes in 1942, and thereafter, it contended that it had not manufactured. Tax was paid in 1943 and judgment went against the petitioner in a suit for refund. Deduction for taxes in 1943 allowed. 2. Deduction of expense of operating airplane while petitioner's president was learning to fly, denied. Expense of airplane operation thereafter allocated between petitioner's business and personal business of its president.
1Opinion of the Court
OPINION.
Disnet, Judge:
The first question to be answered in this matter is whether the petitioner may deduct in 1943 excise taxes paid in that year, but assessed on the ground of manufacture of hair oil in 1936, 1937, and 1938. The respondent contends, in accord with the deficiency notice, that the deductions should have been taken in 1936, 1937, and 1938, being amounts accruable for those years, the petitioner being upon an accrual basis of accounting. The petitioner’s argument is based in effect upon Dixie Pine Products Co. v. Commissioner, 320 U. S. 516, the argument being made, as in that…
2Cases cited2 opinions
- Welch v. HelveringSupreme Court of the United States · 1933
- Dixie Pine Products Co. v. CommissionerSupreme Court of the United States · 1944
3Cited by12 opinions
- Buscaglia v. Tribunal de ContribucionesSupreme Court of Puerto Rico · 1950
- Guantanamo & W. R. Co. v. CommissionerUnited States Tax Court · 1959
- Knudtson v. CommissionerUnited States Tax Court · 1980
- Western Cartridge Co. v. CommissionerUnited States Tax Court · 1948
- Beckley v. CommissionerUnited States Tax Court · 1975
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