Tennessee Growers, Inc. v. King

OPINION

COOPER, Chief Justice.

This is an action by a taxpayer for refund of state excise taxes paid under protest. The chancellor entered judgment for the taxpayer, and the commissioner appealed.

Tennessee Growers, Inc. acquired all of the capital stock of Shelton Fertilizer Co., Inc. on January 1, 1979. On January 5, 1979, Tennessee Growers, Inc. liquidated Shelton, took over its assets, assumed its liabilities, and cancelled the stock of Shelton.

Shelton filed a federal income tax return for the period of January 1, 1979, through January 5, 1979, reporting gross income of $123,605.00…