The Overlakes Corporation v. Commissioner of Internal Revenue

The majority seems completely bemused by the words “contract price re-determination” which they treat as something quite distinct from and wholly unconnected with a finding of excessive profits. They accept the Commissioner’s thesis that the parties to the contract made an across the board reduction in unit sales prices and, on evidence which is dubious at best, the Tax Court so found. But whatever the post-performance negotiations and agreement may be called, it was a renegotiation to determine excessive profits as defined in § 3806(a) (1) (A). The so-called contract price redetermination…