Electronic Mechanics, Inc. v. Commissioner
United States Tax Court
Petitioner having worked for less than 12 months on a program of development initiated several years earlier by another corporation from which petitioner indirectly acquired its assets, held not entitled to relief under section 721 (a) (2) (C), Internal Revenue Code, requiring research or development "extending over a period of more than 12 months."
1Opinion of the Court
OPINION.
Opper, Judge:
We are met at the threshold by a question said to be of first impression: Whether petitioner, not having existed for 12 months, could possibly avail itself of the relief accorded by section 721 (a) (2) (C) for research and development “extending over a period of more than 12 months.”1 Respondent’s regulations expressly require that the research and development “must be that of the taxpayer.”2 Petitioner attacks the regulation as being arbitrary and invalid. We find it, however, to be firmly buttressed upon the legislative history.3 For that reason if for no other, we view…
2Cases cited3 opinions
- Stanton Brewery, Inc. v. CommissionerUnited States Tax Court · 1948
- Gallant v. Fashion Piece Dye WorksNew Jersey Court of Chancery · 1934
- P. Lorillard Co. v. PeperU.S. Circuit Court for the District of Eastern Missouri · 1895
3Cited by1 opinion
- Electronic Mechanics, Inc. v. CommissionerUnited States Tax Court · 1950