Bard-Parker Co. v. Commissioner
United States Tax Court
1. Held: The amount to be included in equity invested capital for excess profits tax purposes is the cost of the property for which common stock was issued.
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1. Held: The amount to be included in equity invested capital for excess profits tax purposes is the cost of the property for which common stock was issued. An exception is made and the transferor's basis must be used under section 113 (a) (7), I. R. C., where the assets, good will, and corporate name of another corporation are acquired in connection with a reorganization upon which no gain or loss is recognized. 2. Held: The value of patents paid in for stock, for use as the cost basis of the patents for inclusion within equity invested capital, determined.
1Opinion of the Court
OPINION.
Van Fossan, Judge:
Before proceeding to the principal issue we would first observe that petitioner’s objection to the pleadings is not well founded. The rules of the Court do not require respondent to plead affirmatively in his answer, his reasons for disallowing the par value of petitioner’s common stock as equity invested capital. Moreover, if, at the hearing or on brief a different reason is relied on than is found in the notice of deficiency or other communications, the petitioner is without basis for objection if surprise is disclaimed by the petitioner and if the facts relied…
2Cases cited4 opinions
- Helvering v. Alabama Asphaltic Limestone Co.Supreme Court of the United States · 1942
- Survaunt v. Commissioner of Internal RevenueCourt of Appeals for the Eighth Circuit · 1947
- Standard Oil Co. v. Commissioner of Internal RevenueCourt of Appeals for the Seventh Circuit · 1942
- Palomar Laundry v. CommissionerUnited States Tax Court · 1946
3Cited by16 opinions
- Pridemark, Inc. v. CommissionerUnited States Tax Court · 1964
- Estate of Lammerts v. CommissionerUnited States Tax Court · 1970
- Bard-Parker Company, Inc. v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1955
- Abegg v. CommissionerUnited States Tax Court · 1968
- Lesser v. CommissionerUnited States Tax Court · 1956
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