Glen Raven Mills, Inc. v. Commissioner
United States Tax Court
Glen Raven acquired substantially all of the stock of Asheville on May 12, 1964. Asheville was in serious financial trouble prior to the Glen Raven takeover, and it had suffered substantial net operating losses in 3 of 5 taxable years preceding 1964. Prior to the Glen Raven takeover, Asheville manufactured hosiery on its 26 full-fashioned knitting machines and 91 seamless knitting machines.
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Glen Raven acquired substantially all of the stock of Asheville on May 12, 1964. Asheville was in serious financial trouble prior to the Glen Raven takeover, and it had suffered substantial net operating losses in 3 of 5 taxable years preceding 1964. Prior to the Glen Raven takeover, Asheville manufactured hosiery on its 26 full-fashioned knitting machines and 91 seamless knitting machines. After the takeover Glen Raven converted Asheville's full-fashioned knitting machines for use in making flat fabric rather than hosiery. This flat fabric was used by Glen Raven in making crimped yarn.…
1Opinion of the Court
Erwin, Judge:
Respondent determined deficiencies in the income taxes of Asheville Hosiery Co. of $42,275.45 and $85,504.28 for the calendar years 1964 and 1965, respectively. Petitioner has conceded that a claimed loss deduction was not allowable. Accordingly, the single issue remaining for decision is whether Asheville Hosiery Co. was prevented by either section 382 or section 2691 from deducting-prior period net operating losses during the years in issue.
FINDINGS OF FACT
Some of the facts have been stipulated and are so found.
Petitioner is Glen Raven Mills, Inc., a corporation which acquired…
2Cases cited6 opinions
- James Realty Company, a Corporation v. United StatesCourt of Appeals for the Eighth Circuit · 1960
- Commissioner of Internal Revenue v. Goodwyn Crockery CompanyCourt of Appeals for the Sixth Circuit · 1963
- Coastal Oil Storage Company, and v. Commissioner of Internal Revenue, AndCourt of Appeals for the Fourth Circuit · 1957
- Goodwyn Crockery Co. v. CommissionerUnited States Tax Court · 1961
- H. F. Ramsey Co. v. CommissionerUnited States Tax Court · 1965
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