Virginia Stevedoring Corporation v. Commissioner of Internal Revenue

Holding that petitioner did not acquire prior to December 1, 1950, “substantially all the properties (other than cash)” of three corporations, and hence is not a “purchasing corporation” as defined in I.R.C.1939, § 474(a) (1) (A), 26 U.S.C. Excess Profits Taxes, § 474(a) (1) (A), the Tax Court rejected petitioner’s attempt to utilize the earnings experience of these corporations in computing its excess profits tax credit. 30 T.C. 996.

We agree with the Tax Court that petitioner was required by I.R.C. 1939, § 474(a) (1) (A) to acquire substantially all the properties of the selling…