Lockhart Creamery v. Commissioner
United States Tax Court
1. Prior to January 1, 1938, petitioner was engaged in the business of manufacturing and selling butter, ice cream, and ice cream mix in the vicinity of Lockhart, Texas. On that date petitioner purchased a going milk processing plant in Austin, Texas.
Read the full summary
1. Prior to January 1, 1938, petitioner was engaged in the business of manufacturing and selling butter, ice cream, and ice cream mix in the vicinity of Lockhart, Texas. On that date petitioner purchased a going milk processing plant in Austin, Texas. Petitioner operated the business and it showed steady growth during 1938 and 1939. Held, petitioner changed the character of its business within the meaning of section 722 (b) (4) of the Internal Revenue Code; held, further, that petitioner was entitled to relief under section 722, and a constructive average base period net income has been…
1Opinion of the Court
OPINION.
Black, Judge:
Three issues are presented in this proceeding relating to petitioner’s excess profits tax liability for the taxable years 1942, 1943, 1944, and 1945: (1) Is petitioner entitled to relief from excess profits tax under the provisions of section 722 (b) (4) of the Code for the milk plant acquired on January 1, 1938, and if so, in what amount; (2) was petitioner committed prior to January 1,1940, to erect an ice cream plant which was constructed in 1941, and if so, what amount of relief is to be allowed therefor under the provisions of section 722 (b) (4) of the Code; and (3)…
2Cases cited2 opinions
- Blum Folding Paper Box Co. v. CommissionerUnited States Tax Court · 1945
- East Texas Motor Freight Lines v. CommissionerUnited States Tax Court · 1946
3Cited by4 opinions
- May Seed and Nursery Company v. Commissioner of Internal RevenueCourt of Appeals for the Eighth Circuit · 1957
- Utility Appliance Corporation, a Corporation v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1958
- Industrial Rayon Corp. v. United StatesUnited States Court of Claims · 1957
- Lockhart Creamery v. CommissionerUnited States Tax Court · 1952