Liberty Fabrics of New York, Inc. v. Commissioner
United States Tax Court
Petitioner's claim for relief under section 722 (b) (4), I. R. C. 1939, on the ground that the character of its business had changed, held, properly disallowed in view of the absence of any permissible reconstruction of normal earnings which would exceed the excess profits credit to which it is entitled in any event under section 713 (f).
1Opinion of the Court
OPINION.
Opper, Judge:
On first impression it is reasonable to assume that petitioner qualifies for relief under section 722 (b) (4). We find it unnecessary to consider this question nor to determine whether this is so by reason of the increased capacity furnished by the 2 new machines and the possible addition of trained employees that might have resulted ; or whether to predicate that conclusion on the development of a new product — the Lastex net. See Davenport Hosiery Mills, Inc., 28 T. C. 201. Even if we make these assumptions, it is impossible to grant petitioner any relief.
This results…
2Cases cited7 opinions
- Irwin B. Schwabe Co. v. CommissionerUnited States Tax Court · 1949
- Trunz, Inc. v. CommissionerUnited States Tax Court · 1950
- Ray Campbell, Wise & Wright, Inc. v. CommissionerUnited States Tax Court · 1950
- General Metalware Co. v. CommissionerUnited States Tax Court · 1951
- Davenport Hosiery Mills, Inc. v. CommissionerUnited States Tax Court · 1957
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3Cited by1 opinion
- Liberty Fabrics of New York, Inc. v. CommissionerUnited States Tax Court · 1957