Woods Lumber Company v. MacFarland

The first question involved herein is whether a Tennessee Corporation engaged in the business of manufacturing lumber in Tennessee and in Arkansas is required to include within its net income for the purpose of Tennessee excise tax its net profit from the sale of timber lands in Arkansas. The next question is that in view of the peculiar and unusual circumstances existing in the taxpayer’s business for the taxable year here involved, does the use of the statutory formula contained in the Tennessee corporate- excise tax law result in an arbitrary and palpably disproportionate amount of the…