Midwest Liquor Dealers, Inc. v. Commissioner
United States Tax Court
Petitioner, a wholesale liquor dealer, commenced business on April 10, 1935, approximately 1 year prior to the beginning of its base period. During its base period petitioner embarked upon a program of purchasing whisky in bulk, having it bottled, and selling it as an exclusive distributor within at least part of its area.
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Petitioner, a wholesale liquor dealer, commenced business on April 10, 1935, approximately 1 year prior to the beginning of its base period. During its base period petitioner embarked upon a program of purchasing whisky in bulk, having it bottled, and selling it as an exclusive distributor within at least part of its area. Petitioner also moved from a rented warehouse in which its operations could not be carried on efficiently to a warehouse which it purchased and in which, with remodeling, it was able to operate its business at lower costs. Held, petitioner has qualified for relief under…
1Opinion of the Court
OPINION.
Raum, Judge:
Petitioner contends that it is entitled to excess profits tax relief under section 722 (a) and 722 (.b) (4) of the Internal Revenue Code,6 by reason of (1) commencing business immediately prior to the base period; (2) changing its capacity for operation of its business by acquisition of larger warehouse facilities from which business could be operated more profitably; and (3) changing the operation of its business by engaging in the purchase of bulk whiskeys.
1. Petitioner maintains that it qualifies for relief under section 722 (b) (4) because it commenced business…
2Cases cited2 opinions
- Ray Campbell, Wise & Wright, Inc. v. CommissionerUnited States Tax Court · 1950
- Mitchell & Co. v. CommissionerUnited States Tax Court · 1953
3Cited by1 opinion
- Midwest Liquor Dealers, Inc. v. CommissionerUnited States Tax Court · 1953