Flory Milling Co. v. Commissioner
United States Tax Court
In computing the petitioner's unused excess profits credit for the fiscal year 1946 the respondent reduced a net operating loss sustained in the taxable year 1948 by 50 per cent of the interest on borrowed capital expended in that year by applying section 711 (a) (2) (L) (i) of the Internal Revenue Code. Held, the determination of the respondent is incorrect.
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In computing the petitioner's unused excess profits credit for the fiscal year 1946 the respondent reduced a net operating loss sustained in the taxable year 1948 by 50 per cent of the interest on borrowed capital expended in that year by applying section 711 (a) (2) (L) (i) of the Internal Revenue Code. Held, the determination of the respondent is incorrect. Section 122 of the Revenue Act of 1945 repealed the excess profits tax law and while subsection (b) of that section provided that the excess profits tax law should remain in effect for the purpose of determining the excess profits tax…
1Opinion of the Court
OPINION.
Hill, Judge:
The deficiency in the excess profits tax of the petitioner for the taxable year ended September 30,1944, was determined by the respondent by allowing a deduction of $33,778.08 for an unused excess profits credit carried back to 1944 from the taxable year ended September 30, 1946. In computing this unused excess profits credit for the taxable year 1946, the respondent reduced a net operating loss sustained by the petitioner in the taxable year 1948 by the amount of $17,361, which represents 50 per cent of the interest expended during 1948 by the petitioner for borrowed…
2Cases cited1 opinion
- National Fruit Product Co. v. United StatesDistrict Court, W.D. Virginia · 1952
3Cited by13 opinions
- Fahs v. MartinCourt of Appeals for the Fifth Circuit · 1955
- Fahs v. MartinCourt of Appeals for the Fifth Circuit · 1955
- Ambassador Hotel Co. v. CommissionerUnited States Tax Court · 1954
- North Star Woolen Mill Co. v. CommissionerUnited States Tax Court · 1954
- Commissioner of Internal Revenue v. Flory Milling Co., Inc.Court of Appeals for the Third Circuit · 1955
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