Legal Opinion

R. W. Eldridge Co. v. Commissioner

United States Tax Court

Decided January 28, 1953No. Docket No. 10443PublishedCited by 1 opinion

The petitioner, a handkerchief manufacturer, filed claims for relief under section 722 (b) (1) and ( 2) of the Internal Revenue Code and for the refund of excess profits taxes paid for its taxable years ended June 30, 1942, and June 30, 1943. The petitioner, in making its returns for the years mentioned, and the respondent, in making his determination with respect thereto, computed the petitioner's excess profits credit on the basis of invested capital.

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1Opinion of the Court

OPINION.

Turner, Judge:

The petitioner, a domestic corporation, was organized prior to January 1, 1940, and under section 712 of the Internal Revenue Code, was privileged to have its excess profits credit computed under whichever of sections 713 or 714 would result in the lesser tax. Admittedly, a computation of the petitioner’s excess profits credit under section 714, on the basis of invested capital, would result in the lesser tax, and it was on that basis that the said credit was computed by the petitioner in filing its returns, and on the same basis that the respondent made his…

2Cases cited4 opinions

Irwin B. Schwabe Co. v. CommissionerUnited States Tax Court · 1949
Trunz, Inc. v. CommissionerUnited States Tax Court · 1950
Stonhard Co. v. CommissionerUnited States Tax Court · 1949
Monarch Mfg. Co. v. CommissionerUnited States Tax Court · 1950

3Cited by1 opinion

R. W. Eldridge Co. v. CommissionerUnited States Tax Court · 1953