Union Parts Mfg. Co. v. Commissioner
United States Tax Court
Petitioner, a screw machine parts manufacturer, experienced net operating losses for the fiscal period July 20, 1936, to June 30, 1937, and for the fiscal years ended June 30, 1938 and 1939. It showed a small profit for the fiscal year ended June 30, 1940. In 1939, it purchased machine tools capable of producing high precision parts.
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Petitioner, a screw machine parts manufacturer, experienced net operating losses for the fiscal period July 20, 1936, to June 30, 1937, and for the fiscal years ended June 30, 1938 and 1939. It showed a small profit for the fiscal year ended June 30, 1940. In 1939, it purchased machine tools capable of producing high precision parts. The increase in its sales during its last fiscal year, subsequent to the acquisition of the new machinery, was due to subcontracting work performed for aircraft companies. It claimed excess profits tax relief under section 722 (b) (4) for the fiscal years ended…
1Opinion of the Court
OPINION.
Pice, Judge:
The petitioner claims a constructive average base period net income of $24,573 under section 722 (b) (4) of the Internal Eevenue Code of 1939. Even if we assume that (1) petitioner commenced business on July 20, 1936, during its base period, (2) that it changed the character of its business on September 10, 1937, when those who had been financing the business were supplanted and their surveillance ceased, and (3) that it changed the character of its business, its product, and its capacity during the period January 25, 1939, to May 31,1940, by the acquisition of new…
2Cases cited8 opinions
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- Pabst Air Conditioning Corp. v. CommissionerUnited States Tax Court · 1950
3 more not listed; retrieve them via the Exa API.
3Cited by1 opinion
- Union Parts Mfg. Co. v. CommissionerUnited States Tax Court · 1955