Consumer-Farmer Milk Cooperative, Inc. v. Commissioner

OPINION.

Hill, Judge:

Petitioner claims exemption under section 101 (8) as a civic league “not organized for profit but operated exclusively for the promotion of social welfare.” The respondent contends that petitioner fails to meet the requirements of the statute.

The fact that petitioner was in a business which is ordinarily carried on for profit or that it was formed to make profit is not necessarily fatal to its claim, Debs Memorial Radio Fund, Inc. v. Commissioner, 148 Fed. (2d) 948, unless the facts disclose that a substantial portion of its net earnings was distributed or distributable to…