Superior Valve & Fittings Co. v. Commissioner
United States Tax Court
Excess Profits Tax -- Section 722 (b) (4) Relief -- Constructive Earnings. -- Petitioner was organized and commenced business in 1938 and its business did not reach, by the end of 1939, the earning level it would have reached had it commenced business two years earlier. Held, relief should be granted. Amount of constructive average base period net income determined.
1Opinion of the Court
OPINION.
Arundell, Judge:
In this proceeding the petitioner seeks relief from excess profits taxes for the years 1941 to 1945, inclusive, by reason of the provisions of Internal Eevenue Code section 722 (a) and 722 (b) (4).
The petitioner commenced business in April 1938, which is within the base period and which is one of the qualifying factors enumerated by the statute. Rand Beverage Co., 18 T. C. 275. It is clear to us that base period net income for the 1 year and 9 months that the petitioner operated in that period does not reflect normal operating results for the entire base period. From…
2Cases cited4 opinions
- Rosenman v. United StatesSupreme Court of the United States · 1945
- Danco Co. v. CommissionerUnited States Tax Court · 1950
- Victory Glass, Inc. v. CommissionerUnited States Tax Court · 1951
- Danco Co. v. CommissionerUnited States Tax Court · 1952
3Cited by13 opinions
- Dubuque Packing Company v. United StatesDistrict Court, N.D. Iowa · 1954
- Duke Power Co. v. CommissionerUnited States Tax Court · 1967
- Lily Mills Co. v. CommissionerUnited States Tax Court · 1954
- Benson Hotel Corp. v. CommissionerUnited States Tax Court · 1961
- Crossfield Products Corp. v. CommissionerUnited States Tax Court · 1953
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