Ohio Machine Tool Co. v. Commissioner
United States Tax Court
Held: Petitioner is entitled to relief from excess profits tax under section 721 (a) (2) (C), I. R. C., because of income received from the sale of machine tools developed through research and experiment in prior years extending over a period of more than 12 months.
1Opinion of the Court
OPINION.
Van Fossan, Judge:
The only issue before us is whether or not the petitioner may be granted the relief provided in section 721 (a) (2) (C) of the Internal Revenue Code1 because it had net abnormal income of the class specified in that section which was attributable to years other than 1942 and 1943.
The facts demonstrate that the Ohio Machine Tool Company developed and then put on the market improved boring and milling machines during the 1930’s. The development of these machines required research and experiment over a period of several years before the machines were ready for sale.…
2Cases cited8 opinions
- Geyer, Cornell & Newell, Inc. v. CommissionerUnited States Tax Court · 1946
- Soabar Co. v. CommissionerUnited States Tax Court · 1946
- Ramsey Accessories Mfg. Corp. v. CommissionerUnited States Tax Court · 1948
- Morrisdale Coal Mining Co. v. CommissionerUnited States Tax Court · 1949
- Keystone Brass Works v. CommissionerUnited States Tax Court · 1949
3 more not listed; retrieve them via the Exa API.
3Cited by9 opinions
- Biddle v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1936
- Sprague Electric Co. v. CommissionerUnited States Tax Court · 1961
- General Tire & Rubber Co. v. CommissionerUnited States Tax Court · 1958
- Overland Corp. v. CommissionerUnited States Tax Court · 1964
- General Tire & Rubber Co. v. CommissionerUnited States Tax Court · 1958
4 more not listed; retrieve them via the Exa API.