Green Spring Dairy, Inc. v. Commissioner
United States Tax Court
Petitioner, although entitled to use the excess profits credit based on income, computed its excess profits taxes on the invested capital method.
Read the full summary
Petitioner, although entitled to use the excess profits credit based on income, computed its excess profits taxes on the invested capital method. It sought relief under the push-back rule of section 722 (b) (4), I. R. C., by reason of the construction of a new plant in 1937. Held, petitioner was not entitled to such relief where it has failed to show that, even if the new plant had been available 2 years earlier, it would have had sufficient earnings to produce credits based upon constructive average base period net income that would be greater than the credits actually employed by it.
1Opinion of the Court
OPINION.
Baum:, Judge:
Petitioner commenced business in 1932, processing and distributing milk, cream, and other dairy products. Its growth Was continuous and vigorous, and it was still growing at the end of the base period, December 31,1939. It had been apparent during the early years of its life that, if its growth were to continue, its existing plant capacity would become inadequate to handle all its business. Petitioner in 1937 constructed a new and modern plant, with a much greater productive capacity, at just about the time when its sales had reached the point calling for maximum…
2Cases cited7 opinions
- Monarch Cap Screw & Mfg. Co. v. CommissionerUnited States Tax Court · 1945
- Blum Folding Paper Box Co. v. CommissionerUnited States Tax Court · 1945
- National Grinding Wheel Co. v. CommissionerUnited States Tax Court · 1947
- Wadley Co. v. CommissionerUnited States Tax Court · 1951
- General Metalware Co. v. CommissionerUnited States Tax Court · 1951
2 more not listed; retrieve them via the Exa API.
3Cited by1 opinion
- Green Spring Dairy, Inc. v. CommissionerUnited States Tax Court · 1952