Calvert Iron Works, Inc. v. Commissioner
United States Tax Court
1. The proof made fails to establish earnings during the last base period year sufficient in amount to result, under reconstruction, in credits greater than the amounts allowed by the respondent under section 713, Internal Revenue Code of 1939. 2. The amount of excess profits tax deferred under section 710 (a) (5) is a part of the deficiency for imposition of an addition for fraud under section 293 (b). 3. Failure to file a timely excess profits tax return for 1945 not shown…
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1. The proof made fails to establish earnings during the last base period year sufficient in amount to result, under reconstruction, in credits greater than the amounts allowed by the respondent under section 713, Internal Revenue Code of 1939. 2. The amount of excess profits tax deferred under section 710 (a) (5) is a part of the deficiency for imposition of an addition for fraud under section 293 (b). 3. Failure to file a timely excess profits tax return for 1945 not shown to have been due to reasonable cause.
1Opinion of the Court
OPINION.
Johnson, Judge:
The parties agree that commencement of business and a change of its character in 1937 meet the qualifying factors of section 722 (b) (4) and entitle petitioner to further consideration for relief.
The fact that petitioner meets the initial requirement is important only if the factor “directly results in an increase of normal earnings which is not adequately reflected by its average base period net income computed under section 713.” Wisconsin Farmer Co., 14 T. C. 1021; M. W. Zack Metal Co., 22 T. C. 349.
Petitioner is entitled to excess profits tax credits based upon…
2Cases cited12 opinions
- Spies v. United StatesSupreme Court of the United States · 1943
- Haywood Lumber & Mining Co. v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1950
- Wisconsin Farmer Co. v. CommissionerUnited States Tax Court · 1950
- Plunkett v. Commissioner of Internal RevenueCourt of Appeals for the First Circuit · 1941
- Southeastern Finance Co. v. Commissioner of Internal RevenueCourt of Appeals for the Fifth Circuit · 1946
7 more not listed; retrieve them via the Exa API.
3Cited by1 opinion
- Calvert Iron Works, Inc. v. CommissionerUnited States Tax Court · 1956