Homer Laughlin China Co. v. Commissioner
United States Tax Court
In the petitioner's claim for relief under section 722, Internal Revenue Code, the constructive average base period net income was computed by the use of the formula or rule set forth in section 713 (f). Held, that the petitioner failed to establish that the tax computed without benefit of section 722 resulted in an excessive and discriminatory tax, or to establish what would be a fair and just amount representing normal earnings to be used as a constructive average base…
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In the petitioner's claim for relief under section 722, Internal Revenue Code, the constructive average base period net income was computed by the use of the formula or rule set forth in section 713 (f). Held, that the petitioner failed to establish that the tax computed without benefit of section 722 resulted in an excessive and discriminatory tax, or to establish what would be a fair and just amount representing normal earnings to be used as a constructive average base period net income, and claim for refund was properly denied.
1Opinion of the Court
OPINION.
Disney, Judge:
Is the petitioner, in the light of the facts above found, entitled to relief under section 722 (a), (b) (5) of the Internal Revenue Code,1 as contended ? Briefly stated, the petitioner’s position is that the reductions in depreciation deductions in the years 1940 and 1941 by the Commissioner, because of use of a revised rate, show that excessive depreciation had been claimed, and allowed, for the base period years 1936 to 1939; that such excessive depreciation depressed earnings below a normal standard and was thus a “factor affecting the taxpayer’s business * * *…
2Cases cited2 opinions
- East Texas Motor Freight Lines v. CommissionerUnited States Tax Court · 1946
- Stimson Mill Co. v. CommissionerUnited States Tax Court · 1946
3Cited by40 opinions
- Irwin B. Schwabe Co. v. CommissionerUnited States Tax Court · 1949
- Trunz, Inc. v. CommissionerUnited States Tax Court · 1950
- Stimson Mill Co. v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1947
- Dowd-Feder, Inc. v. CommissionerUnited States Tax Court · 1948
- Midvale Co. v. CommissionerUnited States Tax Court · 1953
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