Hemenway-Johnson Furniture Co. v. Commissioner

OPINION.

Withey, Judge:

It is conceded that the petitioner’s acquisition of certain of the assets, plus the store location of Johnson, and the opening of three branch stores during the base period years, represents changes in capacity for operation within the import of section 722(b) (4) of the Internal Revenue Code.1 It is unnecessary for us to consider the section 722 (b) (2) factor alleged by petitioner as a ground for relief because of our ultimate grounds for decision herein. Under the provisions of section 722 (a) the taxpayer must go further than merely establishing the existence of a…