Julius Garfinckel & Co. v. Commissioner
United States Tax Court
Petitioner acquired all the stock in one corporation and a controlling interest in another. One corporation remained profitable while the other corporation sustained losses. In 1952 petitioner caused the profit corporation to merge into the loss corporation, and the consolidated corporation continued the former business operations as separate operating divisions.
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Petitioner acquired all the stock in one corporation and a controlling interest in another. One corporation remained profitable while the other corporation sustained losses. In 1952 petitioner caused the profit corporation to merge into the loss corporation, and the consolidated corporation continued the former business operations as separate operating divisions. In 1953 the consolidated corporation claimed as a net operating loss deduction its premerger losses against the postmerger profits, all of which were earned by the newly acquired division (formerly the profit corporation). Held, the…
1Opinion of the Court
Mulroney, Judge:
The respondent determined a deficiency in petitioner’s income tax for the taxable year ended July 31, 1953, in the amount of $307,308.13. The issue is whether certain premerger losses can be carried over and offset against certain postmerger income.
FINDINGS OF FACT
Some of the facts are stipulated and they are found accordingly.
Petitioner is a Virginia corporation with its principal place of business in Washington, D.C. The A. De Pinna Co. was a New York corporation, organized in 1911, and engaged in selling clothing at retail. Its main store was at Fifth Avenue and 52d Street…
2Cases cited11 opinions
- Libson Shops, Inc., v. Koehler, District Director of Internal RevenueSupreme Court of the United States · 1957
- Mill Ridge Coal Company v. George D. Patterson, District Director of Internal RevenueCourt of Appeals for the Fifth Circuit · 1959
- A. C. Willingham v. United StatesCourt of Appeals for the Fifth Circuit · 1961
- J. G. Dudley Company, Incorporated (Formerly Headen Hosiery Mills, Incorporated) v. Commissioner of Internal RevenueCourt of Appeals for the Fourth Circuit · 1962
- Norden-Ketay Corporation (Formerly Ketay Instrument Corporation) v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1963
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3Cited by22 opinions
- Ach v. CommissionerUnited States Tax Court · 1964
- Humacid Co. v. CommissionerUnited States Tax Court · 1964
- H. F. Ramsey Co. v. CommissionerUnited States Tax Court · 1965
- Frederick Steel Co. v. CommissionerUnited States Tax Court · 1964
- Beckett v. CommissionerUnited States Tax Court · 1963
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