Kahuku Plantation Co. v. Commissioner
United States Board of Tax Appeals
1. Under the Revenue Act of 1918, held, a taxpayer is entitled to make its returns of income upon the basis on which its accounts are kept, if such accounts accurately reflect its income. 2. The petitioner was engaged in raising and marketing sugar cane. The planting, cultivation, and marketing of its crop extended over three taxable years. It kept its accounts on the "crop basis" of accounting.
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1. Under the Revenue Act of 1918, held, a taxpayer is entitled to make its returns of income upon the basis on which its accounts are kept, if such accounts accurately reflect its income. 2. The petitioner was engaged in raising and marketing sugar cane. The planting, cultivation, and marketing of its crop extended over three taxable years. It kept its accounts on the "crop basis" of accounting. Held, that an amount received for losses to a crop, caused by a strike, is to be accounted for in the same manner as any other receipt from the crop. 3. "Crop basis" of accounting discussed.
1Opinion of the Court
*983OPINION.
Phillips:
During the years involved the petitioner was engaged in the operation of a sugar plantation on the island of Oahu, in the Territory of Hawaii. In the Hawaiian Islands a sugar crop matures in about two years. The cane is planted or ratooned during the spring and summer of the first year, cultivated during the second year and cut and ground in the third year. During each calendar year there are, therefore, three crops to be considered; the crop which is being harvested, the crop which is being started, and the intermediate crop, planted the previous year, which is under…
2Cases cited3 opinions
- Ewa Plantation Co. v. WilderCourt of Appeals for the Ninth Circuit · 1923
- Barry v. Farmers' Mutual Hail InsuranceSupreme Court of Iowa · 1900
- McIlrath v. Farmers Mutual Hail InsuranceSupreme Court of Iowa · 1901
3Cited by8 opinions
- Ewa Plantation Co. v. CommissionerUnited States Board of Tax Appeals · 1928
- Kahuku Plantation Co. v. CommissionerUnited States Board of Tax Appeals · 1928
- Kahuku Plantation Co. v. CommissionerUnited States Board of Tax Appeals · 1928
- Oahu Sugar Co. v. CommissionerUnited States Board of Tax Appeals · 1928
- South Coast Corp. v. CommissionerUnited States Tax Court · 1945
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