Miller-Smith Hosiery Mills v. Commissioner
United States Tax Court
Petitioner, a corporation manufacturing ladies hosiery, sold silk and nylon hosiery to one of its customers in 1945 under an arrangement whereby the customer remitted the full O. P. A. ceiling price plus five-sixths of his net profit to one of petitioner's officers. The latter turned over 90 per cent of the O. P. A. ceiling price to petitioner and, after deducting his expenses, divided the remainder among the officer-director stockholders of the corporation.
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Petitioner, a corporation manufacturing ladies hosiery, sold silk and nylon hosiery to one of its customers in 1945 under an arrangement whereby the customer remitted the full O. P. A. ceiling price plus five-sixths of his net profit to one of petitioner's officers. The latter turned over 90 per cent of the O. P. A. ceiling price to petitioner and, after deducting his expenses, divided the remainder among the officer-director stockholders of the corporation. Held, the entire profit on the sale represented taxable income to petitioner within the purview of section 22 (a), Internal Revenue Code.
1Opinion of the Court
Miller-Smith Hosiery Mills, Petitioner, v. Commissioner of Internal Revenue, Respondent
Miller-Smith Hosiery Mills v. Commissioner
Docket No. 27856
United States Tax Court
22 T.C. 581; 1954 U.S. Tax Ct. LEXIS 175;
June 17, 1954, Filed. June 17, 1954, Filed
Decision will be entered for the respondent.
Petitioner, a corporation manufacturing ladies hosiery, sold silk and nylon hosiery to one of its customers in 1945 under an arrangement whereby the customer remitted the full O. P. A. ceiling price plus five-sixths of his net profit to one of petitioner's officers. The latter turned over 90 per cent of…
2Cases cited3 opinions
- United States v. Joliet & Chicago RailroadSupreme Court of the United States · 1942
- Essex Constr. Co. v. Commissioner (A)United States Tax Court · 1949
- Miller-Smith Hosiery Mills v. CommissionerUnited States Tax Court · 1954