Stow Mfg. Co. v. Commissioner
United States Tax Court
On June 1, 1943, petitioner entered into a final renegotiation agreement with the Secretary of the Navy in which it was agreed that its excessive profits were $ 350,000 and should be paid, $ 70,000 in cash and $ 280,000 by an excess profits tax credit under section 3806 (b) (1), I. R. C. This $ 280,000 excess profits tax credit was erroneous and should have been $ 252,000. Notwithstanding the error the renegotiation agreement, by its very terms, could not be reopened.
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On June 1, 1943, petitioner entered into a final renegotiation agreement with the Secretary of the Navy in which it was agreed that its excessive profits were $ 350,000 and should be paid, $ 70,000 in cash and $ 280,000 by an excess profits tax credit under section 3806 (b) (1), I. R. C. This $ 280,000 excess profits tax credit was erroneous and should have been $ 252,000. Notwithstanding the error the renegotiation agreement, by its very terms, could not be reopened. On May 20, 1948, respondent determined a deficiency in petitioner's excess profits tax by eliminating from petitioner's gross…
1Opinion of the Court
OPINION.
Black, Judge:
There is but one issue in this proceeding: Whether an erroneous and excessive tax credit given petitioner under section 3806 (b) of the Internal Revenue Code and which credit was incorporated in a final renegotiation agreement can be made the basis of the determination of a deficiency in petitioner’s excess profits tax in the manner which has been detailed in our findings of fact.
Respondent determined a deficiency in excess profits tax by eliminating from petitioner’s gross income $350,000 which represented excessive profits determined in a final renegotiation agreement.…
2Cases cited2 opinions
- Baltimore Foundry & Machine Corp. v. CommissionerUnited States Tax Court · 1946
- Maguire Indus. v. Secretary of WarUnited States Tax Court · 1949
3Cited by1 opinion
- Stow Mfg. Co. v. CommissionerUnited States Tax Court · 1950