Ajax Engineering Corp. v. Commissioner

OPINION.

Tietjens, Judge:

The parties agree that the only question here is when petitioner’s first taxable year began. If it began in 1941, as contended by petitioner, the Kevenue Act of 1941 would apply to the determination of petitioner’s excess profits tax; if in 1942, as argued by respondent, the higher rates of the Revenue Act of 1942 would be brought into play.

Respondent’s position is that petitioner had no existence either in fact or in law until its charter was granted on February 7, 1942, and that its taxable year began on that date. On the other hand, petitioner points out that it…