Pratt & Letchworth Co. v. Commissioner
United States Tax Court
1. Excess Profits Tax Relief Under Sec. 722 (b) (2), I. R. C. -- Held, a contract under which most of petitioner's production was reserved for one customer did not bring about a restriction in petitioner's sales promotional activities which was either temporary or unusual; the contract was the result of an internal management decision and could not form the basis for relief; and petitioner's earnings were not depressed during the base period. 2. Subsec.
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1. Excess Profits Tax Relief Under Sec. 722 (b) (2), I. R. C. -- Held, a contract under which most of petitioner's production was reserved for one customer did not bring about a restriction in petitioner's sales promotional activities which was either temporary or unusual; the contract was the result of an internal management decision and could not form the basis for relief; and petitioner's earnings were not depressed during the base period. 2. Subsec. (b) (4). -- Held, within the meaning of subsection (b) (4) the elimination of petitioner's malleable iron production was not a change in the…
1Opinion of the Court
OPINION.
Bruce, Judge:
Petitioner alleges that its excess profits taxes for the taxable periods January 1, 1940, to August 31, 1940; year ended August 31, 1941; and year ended August 31, 1942, are excessive and discriminatory and here seeks relief under the provisions of section 722, Internal Revenue Code. Specifically, petitioner invokes sub-paragraphs (2), (4), and (5) of section 722 (b).1
The petitioner bases its claim for relief under section 722 (b) (2) upon the existence of the contract with W. H. Miner, Inc., during the 5-year period immediately prior to the base period. Petitioner…
2Cases cited4 opinions
- Monarch Cap Screw & Mfg. Co. v. CommissionerUnited States Tax Court · 1945
- Wisconsin Farmer Co. v. CommissionerUnited States Tax Court · 1950
- Granite Constr. Co. v. CommissionerUnited States Tax Court · 1952
- Ray Campbell, Wise & Wright, Inc. v. CommissionerUnited States Tax Court · 1950
3Cited by14 opinions
- Huttig Sash & Door Co. v. CommissionerUnited States Tax Court · 1955
- Clarksburg Publishing Co. v. CommissionerUnited States Tax Court · 1957
- Crane Co. of Minnesota v. CommissionerUnited States Tax Court · 1956
- Crane Company of Minnesota v. CommissionerUnited States Tax Court · 1956
- Ledanois Land & Stone Co. v. CommissionerUnited States Tax Court · 1957
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