Emporium World Millinery Co. v. Commissioner
United States Tax Court
Claim for excess profits tax relief under section 722(b)(2), I.R.C. 1939, held, properly denied where evidence fails to show to what extent, if any, petitioner's base period earnings from the operation of a chain of millinery shops were depressed because of a fashion style or fad of "hatlessness" in women's dress.
1Opinion of the Court
OPINION.
OppeR, Judge:
Petitioner’s contentions are that its base period net income was depressed because of an unusual and temporary economic circumstance identified as “hatlessness,” which entitles it to excess profits tax relief under section 722(b) (2), I.R.C. 1939.1 Petitioner proposes to correct this abnormality by restoring to base period income that portion of its advertising expenses for each of the base period years which it attributes to the cost of combating hatlessness. The resulting constructive average base period net income under the proposed adjustment is $111,527.11.
In our…
2Cases cited9 opinions
- Lamar Creamery Co. v. CommissionerUnited States Tax Court · 1947
- Granite Constr. Co. v. CommissionerUnited States Tax Court · 1952
- Wadley Co. v. CommissionerUnited States Tax Court · 1951
- Packer Pub. Co. v. Commissioner of Internal RevenueCourt of Appeals for the Eighth Circuit · 1954
- Brown Paper Mill Co. v. CommissionerUnited States Tax Court · 1954
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3Cited by1 opinion
- Emporium World Millinery Co. v. CommissionerUnited States Tax Court · 1959