Gemological Institute of America v. Commissioner
United States Tax Court
Petitioner corporation, which included in its activities the giving of instructive courses in gemmology, held, not exempt from tax under section 101 (6), I. R. C., because part of its net earnings inured to the benefit of an individual.
1Opinion of the Court
OPINION.
Johnson, Judge:
Petitioner, claiming exemptions from tax on corporations under section 101 (6), asserts that it was organized and operated exclusively for scientific and educational purposes, and that no part of its net earnings inures to the benefit of any private shareholder or individual.
In presenting the issues, respondent alleges, inter alia, that part of the petitioner’s net earnings inured to the benefit of an individual, and, therefore, petitioner is precluded from the benefits of the section.
In order to be exempt, under this section, petitioner must meet each of three…
2Cases cited2 opinions
- Commissioner of Internal Revenue v. OrtonCourt of Appeals for the Sixth Circuit · 1949
- Edward Orton, Ceramic Foundation v. CommissionerUnited States Tax Court · 1947
3Cited by4 opinions
- Birmingham Business College, Inc. v. CommissionerCourt of Appeals for the Fifth Circuit · 1960
- Gemological Institute of America, Inc. v. RiddellDistrict Court, S.D. California · 1957
- Birmingham Business College, Inc. v. Commissioner Of Internal RevenueCourt of Appeals for the Fifth Circuit · 1960
- Gemological Institute of America v. CommissionerUnited States Tax Court · 1952