Southwestern Oil & Gas Co. v. Commissioner
United States Tax Court
1. Excess Profits Tax -- Net Abnormal Income Attributable to Prior Years. -- In determining the amount of net abnormal income of the petitioner attributable to prior years under section 721 (b), Internal Revenue Code, all of it which resulted from sales of crude oil at higher prices in the taxable year than in prior years should be allocated to the taxable year. 2. Id. -- In determining the amount of the net abnormal income attributable to prior years no diminution thereof…
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1. Excess Profits Tax -- Net Abnormal Income Attributable to Prior Years. -- In determining the amount of net abnormal income of the petitioner attributable to prior years under section 721 (b), Internal Revenue Code, all of it which resulted from sales of crude oil at higher prices in the taxable year than in prior years should be allocated to the taxable year. 2. Id. -- In determining the amount of the net abnormal income attributable to prior years no diminution thereof is necessitated by the fact that the unit cost per barrel of crude oil produced was lower in the taxable year than in…
1Opinion of the Court
OPINION.
Smith, Judge:
The general purpose of section 721, Internal Revenue Code, added by section 201 of the Second Revenue Act of 1940, as amended in 1941 and 1942, is to relieve the burden of the excess profits tax in certain hardship cases by permitting the reallocation of certain portions of its income, described as net abnormal income, from the year of its actual realization to other years. The tax for the current year is not to exceed the sum of the tax for such year computed without the inclusion of the income attributable to prior years and the resulting increase in the tax for such…
2Cases cited1 opinion
- W. B. Knight Machinery Co. v. CommissionerUnited States Tax Court · 1946
3Cited by15 opinions
- Morrisdale Coal Mining Co. v. CommissionerUnited States Tax Court · 1952
- James F. Waters, Inc. v. Commissioner of Internal Rev.Court of Appeals for the Ninth Circuit · 1947
- Primas Groves, Inc. v. CommissionerUnited States Tax Court · 1950
- Dr. P. Phillips & Son, Inc. v. CommissionerUnited States Tax Court · 1953
- Richey v. CommissionerUnited States Tax Court · 1953
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