Colonial Amusement Co. v. Commissioner
United States Tax Court
On the record, held: (1) The deduction of the amount of $ 14,730.28, representing officers' salaries accrued in 1935, but paid in 1936, by petitioner, which respondent determined was on a cash basis, and the deduction of the cost of premiums distributed by petitioner to patrons attending its theaters were not of a class abnormal to petitioner under section 711 (b) (1) (J) (i) of the Internal Revenue Code.
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On the record, held: (1) The deduction of the amount of $ 14,730.28, representing officers' salaries accrued in 1935, but paid in 1936, by petitioner, which respondent determined was on a cash basis, and the deduction of the cost of premiums distributed by petitioner to patrons attending its theaters were not of a class abnormal to petitioner under section 711 (b) (1) (J) (i) of the Internal Revenue Code. (2) Petitioner has failed to carry its burden of showing such deductions were abnormal in amount under section 711 (b) (1) (J) (ii) of the Internal Revenue Code.
1Opinion of the Court
OPINION.
Leech, Judge-.
The basic issue presented is whether, in computing petitioner’s excess profits tax for the respective taxable periods involved, the respondent should have disallowed certain deductions under section 711 (b) (1) (J) and (K) of the Internal Revenue'Code.1 By way of a preliminary argument, petitioner contends that it does not have the burden of establishing the elements specified in subpara-graph (K), since the respondent did not refer to said subsection in his deficiency notice. Wentworth Manufacturing Co., 6 T. C. 1201. That case is clearly distinguishable on its facts.…
2Cases cited4 opinions
- Green Bay Lumber Co. v. CommissionerUnited States Tax Court · 1944
- Arrow-Hart & Hegeman Electric Co. v. CommissionerUnited States Tax Court · 1946
- E. B. & A. C. Whiting Co. v. CommissionerUnited States Tax Court · 1948
- Frank Shepard Co. v. CommissionerUnited States Tax Court · 1947
3Cited by4 opinions
- Quaker Oats Co. v. CommissionerUnited States Tax Court · 1957
- Colonial Amusement Co. v. CommissionerUnited States Tax Court · 1948
- Quaker Oats Co. v. CommissionerUnited States Tax Court · 1957
- Quaker Oats Co. v. CommissionerUnited States Tax Court · 1957