Lime Cola Co. v. Commissioner
United States Tax Court
1. Held, receipt by Lime Cola Company (referred to as transferor) of $ 3,018.42 in 1941 found on the facts to have been reported as income in 1942, and is not to be added again to 1942 income. 2. In 1930, transferor purchased $ 1,294.65 worth of flavoring for use in making its concentrate and credited the price to an account payable. The flavoring proved to be defective so transferor failed to pay for it.
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1. Held, receipt by Lime Cola Company (referred to as transferor) of $ 3,018.42 in 1941 found on the facts to have been reported as income in 1942, and is not to be added again to 1942 income. 2. In 1930, transferor purchased $ 1,294.65 worth of flavoring for use in making its concentrate and credited the price to an account payable. The flavoring proved to be defective so transferor failed to pay for it. However, it carried the account payable on its books until 1942, then wrote it off to surplus. Held, in the absence of proof to the contrary by transferor, it is found that transferor…
1Opinion of the Court
OPINION.
Black, Judge:
1. Respondent asserts that $3,018.75 received in 1941 by transferor, Lime Cola Company, from its sales agent, Lime Cola Sales Company, Inc. (Sales), and against which units of concentrate were shipped by transferor to Sales in 1942 should be added to transferor’s income as reported for 1942. The transferees contend that the transferor has already included that sum in its 1942 sales figures and reported it as income. The question presented is purely one of fact. A certified public accountant with over 17 years’ experience testified that he audited transferor’s books for…
2Cases cited12 opinions
- Burnet v. HoustonSupreme Court of the United States · 1931
- Commissioner v. JacobsonSupreme Court of the United States · 1949
- Helvering v. American Dental Co.Supreme Court of the United States · 1943
- Leach v. CommissionerUnited States Tax Court · 1953
- Union Trust Co. v. Commissioner of Internal RevenueCourt of Appeals for the Seventh Circuit · 1940
7 more not listed; retrieve them via the Exa API.
3Cited by19 opinions
- Bear Manufacturing Company v. United StatesCourt of Appeals for the Seventh Circuit · 1970
- James E. Caldwell & Co. v. CommissionerUnited States Tax Court · 1955
- Home Mutual Insurance Company, Cross v. Commissioner of Internal Revenue, CrossCourt of Appeals for the Seventh Circuit · 1980
- Stahl v. CommissionerUnited States Tax Court · 1963
- Vanguard Recording Soc. v. CommissionerUnited States Tax Court · 1969
14 more not listed; retrieve them via the Exa API.