Glenshaw Glass Co. v. Commissioner
United States Tax Court
1. During the base period years petitioner, a glass container manufacturer, paid royalties to Hartford-Empire Co. under a contract which it had with that company. These royalty payments were allowed as deductions by the Commissioner in computing petitioner's net income for the base period years.
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1. During the base period years petitioner, a glass container manufacturer, paid royalties to Hartford-Empire Co. under a contract which it had with that company. These royalty payments were allowed as deductions by the Commissioner in computing petitioner's net income for the base period years. In a subsequent year these payments were recovered by petitioner as the result of a suit based on the ground that they had been made because of a patent and injunction decree obtained by fraud by Hartford-Empire Co. Held, petitioner's payments of these royalties during the base period years were made…
1Opinion of the Court
OPINION.
Black, Judge:
Issue 1. — The question presented under this issue is whether the royalty payments during the base period years were attributable to the fraudulently induced decree and were abnormal deductions for petitioner and should, therefore, be restored to petitioner’s base period income for the purpose of determining its excess profits tax credit for the taxable years herein. Petitioner contends that these royalty payments were (1) attributable to the decree añd (2) were abnormal deductions for petitioner and therefore are within the meaning of section 711 (b) (1) (H) of the…
2Cases cited5 opinions
- Commissioner v. SunnenSupreme Court of the United States · 1948
- Pepper v. LittonSupreme Court of the United States · 1939
- Botany Worsted Mills v. United StatesSupreme Court of the United States · 1929
- National Bank of Commerce v. CommissionerUnited States Tax Court · 1949
- Bush v. CommissionerUnited States Tax Court · 1948
3Cited by5 opinions
- Donald A. Peck Judith W. Peck v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1990
- Peck v. CommissionerUnited States Tax Court · 1988
- Donald A. Peck Judith W. Peck v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1990
- Glenshaw Glass Co. v. CommissionerUnited States Tax Court · 1949
- Peck v. CommissionerUnited States Tax Court · 1988