Crossett Western Co. v. Commissioner
United States Tax Court
1. Held, section 718 (b) (3), Internal Revenue Code, being clear and unambiguous, does not justify resort to Congressional reports for interpretation. 2. Held, further, application of the section requiring the deduction of the amount of earnings and profits of another corporation which previously at any time were included in the accumulated earnings and profits of a corporation by reason of a tax-free reorganization is mandatory, irrespective of the fact that because of…
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1. Held, section 718 (b) (3), Internal Revenue Code, being clear and unambiguous, does not justify resort to Congressional reports for interpretation. 2. Held, further, application of the section requiring the deduction of the amount of earnings and profits of another corporation which previously at any time were included in the accumulated earnings and profits of a corporation by reason of a tax-free reorganization is mandatory, irrespective of the fact that because of operating losses in the intervening years taxpayer had no accumulated earnings and profits at the beginning of the taxable…
1Opinion of the Court
OPINION.
Van Fossan, Judge:
The sole question for our determination is whether, in computing the petitioner’s equity invested capital for 1940 and 1941, there must be deducted, under section 718 (b) (3) of the Internal Revenue Code, the amount of the earnings and profits of other corporations which the petitioner received in a tax-free reorganization, where because of operating losses in the intervening years the taxpayer had no accumulated earnings and profits at the beginning of either of the taxable years in question.
The facts are not in dispute. The petitioner was organized to take over the…
2Cited by6 opinions
- Stratton Grain Co. v. ReisimerDistrict Court, E.D. Wisconsin · 1958
- Aycock v. CommissionerUnited States Tax Court · 1948
- Aycock v. CommissionerUnited States Tax Court · 1948
- Crossett Western Co. v. CommissionerUnited States Tax Court · 1945
- Hardinge Co. v. CommissionerUnited States Tax Court · 1947
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