Dowd-Feder, Inc. v. Commissioner
United States Tax Court
Held, where the excess profits credit computed by using average base period net income reconstructed under section 722, I. R. C., is less than the credit resulting from application of the 75 per cent rule under section 713 (e) (1) to the actual base period net income, the taxpayer is not entitled to relief under section 722 in addition to the benefits of section 713 (e) (1). Stimson Mill Co., 7 T. C. 1065; affd., 163 Fed.
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Held, where the excess profits credit computed by using average base period net income reconstructed under section 722, I. R. C., is less than the credit resulting from application of the 75 per cent rule under section 713 (e) (1) to the actual base period net income, the taxpayer is not entitled to relief under section 722 in addition to the benefits of section 713 (e) (1). Stimson Mill Co., 7 T. C. 1065; affd., 163 Fed. (2d) 269; certiorari denied, 332 U.S. 824; rehearing denied, 332 U.S. 839; and Homer Laughlin China Co., 7 T. C. 1325, followed.
1Opinion of the Court
OPINION.
Van Fossan, Judge:
The respondent determined a deficiency of $7,885.51 in income tax and an overassessment of $6,552.18 in excess profits tax for the year 1941. Taxpayer alleges as error that:
1. In arriving at the excess profits credit for 1942 and resultant unused excess profits credit carry-back to 1941, the Commissioner erred in holding that the application of the so-called “75% rule” under Internal Revenue Code Section 713 (e) (1) precludes allowance for relief under Section 722.
2. The Commissioner erred in refusing to permit reconstruction of 1939 excess profits net income in…
2Cases cited2 opinions
- Homer Laughlin China Co. v. CommissionerUnited States Tax Court · 1946
- Stimson Mill Co. v. CommissionerUnited States Tax Court · 1946
3Cited by14 opinions
- Brown Paper Mill Co. v. CommissionerUnited States Tax Court · 1954
- Midvale Co. v. CommissionerUnited States Tax Court · 1953
- Block One Thirty-Nine, Inc. v. CommissionerUnited States Tax Court · 1952
- Acme Breweries v. CommissionerUnited States Tax Court · 1950
- Dayton Rubber Co. v. CommissionerUnited States Tax Court · 1956
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