Richey v. Commissioner
United States Tax Court
Excess Profits Tax -- Relief Under Section 721. -- A corporation prospected for iron ore throughout 1938 and for several months in 1939 when it located a large body of ore from the sales of which it realized income in 1940 in excess of 125 per cent of average income for the years 1938 and 1939. Held, that the corporation realized income of the class defined by section 721 (a) (2) (C) and is entitled to relief.
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Excess Profits Tax -- Relief Under Section 721. -- A corporation prospected for iron ore throughout 1938 and for several months in 1939 when it located a large body of ore from the sales of which it realized income in 1940 in excess of 125 per cent of average income for the years 1938 and 1939. Held, that the corporation realized income of the class defined by section 721 (a) (2) (C) and is entitled to relief. Amount of net abnormal income attributable to prior years determined.
1Opinion of the Court
OPINION.
Arundell, Judge:
There was originally an issue in each of these proceedings as to whether the petitioners were liable as transferees of Wade and Eichey, Incorporated, for any deficiency in the taxes of that corporation. The parties have stipulated figures which disclose that, as stockholders of the corporation, each of the petitioners upon dissolution of the corporation received from it net assets of a value in excess of the amount of the deficiency determined by the* respondent. The petitioners are therefore liable as transferees for any deficiency that may result from our decision on…
2Cases cited4 opinions
- 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
- Southwestern Oil & Gas Co. v. CommissionerUnited States Tax Court · 1946
3Cited by1 opinion
- Richey v. CommissionerUnited States Tax Court · 1953