Leo Kahn Furniture Co. v. Commissioner of Internal Revenue

McAllister, Circuit Judge.

This case presents a single issue of law: whether, for excess profits tax purposes, petitioner’s deduction for charitable contributions is properly limited to 5% of its net income, as finally determined, on the installment basis of accounting, or to 5% of its net income, as finally determined, on the accrual basis. The Tax Court held that the amount of such deduction was limited to 5% of its net income, computed on the accrual basis; and petitioner seeks review in this court.

Petitioner is engaged in the retail furniture business, regularly making sales on the…