Tri-State Beverage Distributors, Inc. v. Commissioner
United States Tax Court
1. Petitioner, a wholesale liquor dealer, allowed discounts from the list price to its customers in order to meet competition during the base period years 1936-1939. The discounts were known at the time of the sale and were not quantity or cash discounts. Petitioner contends these discounts are abnormal deductions under section 711 (b) (1) (J), I. R. C. 1939, and should be restored to the excess profits net income for the base period years.
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1. Petitioner, a wholesale liquor dealer, allowed discounts from the list price to its customers in order to meet competition during the base period years 1936-1939. The discounts were known at the time of the sale and were not quantity or cash discounts. Petitioner contends these discounts are abnormal deductions under section 711 (b) (1) (J), I. R. C. 1939, and should be restored to the excess profits net income for the base period years. Held, the discounts are adjustments of the sales price and are made to arrive at gross income; they are not deductions from gross income and not…
1Opinion of the Court
OPINION.
Black, Judge:
The questions in this proceeding relate to certain discounts which the petitioner allowed to its customers. The petitioner seeks a reduction of excess profits tax for the years 1943 and 1944 on the ground that these discounts represented abnormal deductions under section 711 (b) (1) (J) or, on the alternative ground, that it is entitled to relief under section 722 (b) (2), because a price war depressed its base period earnings by the amount of these abnormal discounts. Petitioner in its brief chiefly argues its assignment of error that it is entitled to section 711 (b)…
2Cases cited5 opinions
- Harlan Bourbon & Wine Co. v. CommissionerUnited States Tax Court · 1950
- Universal Optical Co. v. CommissionerUnited States Tax Court · 1948
- Seggerman Nixon Corp. v. CommissionerUnited States Tax Court · 1956
- Colorado Milling & Elevator Co. v. Commissioner of Internal RevenueCourt of Appeals for the Tenth Circuit · 1953
- Polley v. WestoverDistrict Court, S.D. California · 1948
3Cited by15 opinions
- Max Sobel Wholesale Liquors v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1980
- Max Sobel Wholesale Liquors v. CommissionerUnited States Tax Court · 1977
- Atzingen-Whitehouse Dairy, Inc. v. CommissionerUnited States Tax Court · 1961
- McKay Machine Co. v. CommissionerUnited States Tax Court · 1957
- Blue Diamond Coal Co. v. CommissionerUnited States Tax Court · 1959
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