Philadelphia, G. & N. R. Co. v. Commissioner
United States Tax Court
Pursuant to provisions in a lease executed in 1870, Federal income and excess profits taxes assessed against petitioner lessor were paid by its lessee. A portion of the income tax paid was included each year as additional rent in petitioner's gross income for 1936 to 1942, inclusive.
Read the full summary
Pursuant to provisions in a lease executed in 1870, Federal income and excess profits taxes assessed against petitioner lessor were paid by its lessee. A portion of the income tax paid was included each year as additional rent in petitioner's gross income for 1936 to 1942, inclusive. Imposition and payment of 1940 and 1941 income taxes at increased rates and inclusion of larger amounts as additional rent in gross income for 1941 and 1942, held not to entitle petitioner to relief under section 722 (a) and (b) ( 5), Internal Revenue Code.
1Opinion of the Court
OPINION.
Hill, Judge:
The petitioner contends that the. facts in this case bring it squarely within the intent, purpose, and letter of the provisions of section 722, and in particular section 722 (a) and (b) (5), of the Internal Revenue Code.1 It designates the lease entered into on November 10, 1870, between it and Philadelphia & Reading Railroad Co. as the “factor affecting taxpayer’s business” which makes its excess profits tax “excessive and discriminatory.”
To be entitled to relief under section 722 petitioner must establish not only that its “base period net income is not a fair measure of…
2Cases cited2 opinions
- United States v. Boston & Maine RailroadSupreme Court of the United States · 1929
- Monarch Cap Screw & Mfg. Co. v. CommissionerUnited States Tax Court · 1945
3Cited by19 opinions
- Clinton Carpet Co. v. CommissionerUnited States Tax Court · 1950
- East Texas Theatres, Inc. v. CommissionerUnited States Tax Court · 1952
- Park & 46th Street Corp. v. CommissionerUnited States Tax Court · 1950
- Telfair Stockton & Co. v. CommissionerUnited States Tax Court · 1953
- A. Finkl & Sons Co. v. CommissionerUnited States Tax Court · 1962
14 more not listed; retrieve them via the Exa API.