Charis Corp. v. Commissioner
United States Tax Court
Petitioner, shortly prior to its base period, introduced a new type of garment in its manufactured line; brought about a change in method of retail selling from office fittings of its garments to home fittings, to better suit the convenience of customers; and transferred certain company-owned branch offices to franchise distributors.
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Petitioner, shortly prior to its base period, introduced a new type of garment in its manufactured line; brought about a change in method of retail selling from office fittings of its garments to home fittings, to better suit the convenience of customers; and transferred certain company-owned branch offices to franchise distributors. Held, only the introduction of the new garment constituted a change in the character of the business within the meaning of section 722 (b) (4), Internal Revenue Code. Petitioner's constructive average base period net income determined.
1Opinion of the Court
OPINION.
BRUCE, Judge:
Petitioner is entitled to use the excess profits credit based on income pursuant to section 713, Internal Revenue Code. It contends, however, that the computation of its excess profits tax by use of its excess profits credit based on income without the benefit of section 722 results in an excessive and discriminatory tax. It undertakes to establish three distinct changes in the character of its business which might qualify it for relief under section 722 (b) (4).1 It also undertakes to establish what would be a fair and just amount representing normal earnings to be used…
2Cases cited8 opinions
- Avey Drilling Machine Co. v. CommissionerUnited States Tax Court · 1951
- 7-Up Ft. Worth Co. v. CommissionerUnited States Tax Court · 1947
- Stonhard Co. v. CommissionerUnited States Tax Court · 1949
- Triangle Raincoat Co. v. CommissionerUnited States Tax Court · 1952
- Jefferson Amusement Co. v. CommissionerUnited States Tax Court · 1952
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3Cited by16 opinions
- Crowell-Collier Pub. Co. v. CommissionerUnited States Tax Court · 1956
- Davenport Hosiery Mills, Inc. v. CommissionerUnited States Tax Court · 1957
- Air Preheater Corp. v. CommissionerUnited States Tax Court · 1961
- Ainsworth Mfg. Corp. v. CommissionerUnited States Tax Court · 1955
- National Screw & Mfg. Co. v. CommissionerUnited States Tax Court · 1959
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