Dixie Margarine Co. v. Commissioner
United States Board of Tax Appeals
From 1923 to 1931 petitioner manufactured and sold a product composed of mixtures of vegetable oils, salt, and skimmed milk, which the Bureau of Internal Revenue held was subject to tax as oleomargarine. During such period petitioner paid the required stamp tax on its product, and deducted the amounts in its income tax returns as part of the cost of goods sold.
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From 1923 to 1931 petitioner manufactured and sold a product composed of mixtures of vegetable oils, salt, and skimmed milk, which the Bureau of Internal Revenue held was subject to tax as oleomargarine. During such period petitioner paid the required stamp tax on its product, and deducted the amounts in its income tax returns as part of the cost of goods sold. In 1932 the Supreme Court held that a product similar to that of petitioner did not come within the taxing statutes, and in the same year the Commissioner refunded to petitioner all amounts theretofore paid by it as stamp taxes except…
1Opinion of the Court
OPINION.
Hill:
Respondent determined a deficiency in petitioner’s income tax liability for the year 19B2 in the amount of $16,775.60. Petitioner showed on its return for the taxable year a net loss of $112,508.47, which respondent adjusted by adding to income “Refund of stamp taxes $284,512.86”, with the explanation that during 1932 petitioner received refunds of stamp taxes in the amount of $241,819.64, representing the aggregate of stamps deducted as cost of sales in prior years, of which total amount of refunds $7,306.78 was used to reduce a net loss claimed for 1931 on the 1932 return.…
2Cases cited3 opinions
- Bull v. United StatesSupreme Court of the United States · 1935
- Burnet v. Sanford & Brooks Co.Supreme Court of the United States · 1931
- Miller v. Standard Nut Margarine Co. of Fla.Supreme Court of the United States · 1932
3Cited by8 opinions
- Elbert v. CommissionerUnited States Tax Court · 1943
- Cartex Mills, Inc. v. CommissionerUnited States Board of Tax Appeals · 1940
- Central Loan & Inv. Co. v. CommissionerUnited States Board of Tax Appeals · 1939
- Dixie Margarine Co. v. CommissionerUnited States Board of Tax Appeals · 1938
- E. B. Elliott Co. v. CommissionerUnited States Board of Tax Appeals · 1941
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