Pittsburgh Milk Co. v. Commissioner
United States Tax Court
A corporation sold milk for net prices, fixed pursuant to agreements with certain of its customers, which were less than the minimum prices prescribed by the Milk Control Commission of Pennsylvania; and, in order to conceal the true nature of the transactions from the local authorities, it entered the sales on its books at the authorized list prices, and charged the reductions from such list prices to advertising.
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A corporation sold milk for net prices, fixed pursuant to agreements with certain of its customers, which were less than the minimum prices prescribed by the Milk Control Commission of Pennsylvania; and, in order to conceal the true nature of the transactions from the local authorities, it entered the sales on its books at the authorized list prices, and charged the reductions from such list prices to advertising. Held, that notwithstanding the illegal nature of the sales, the gains or profits which the corporation realized therefrom must be computed, for income tax purposes, with respect to…
1Opinion of the Court
OPINION'.
PieRCe, Judge:
The question here is what effect, if any, should be given for income tax purposes to the allowances (sometimes called discounts or rebates) which the petitioner corporation made to certain purchasers of its milk in willful violation of the Milk Control Law of Pennsylvania.
The petitioners’ position is that such allowances should be given effect in either of two ways (each of which would yield substantially the same tax result) : (1) That such allowances should be applied to reduce the corporations gross sales, on the theory that the milk actually was sold for agreed net…
2Cases cited6 opinions
- United States v. SullivanSupreme Court of the United States · 1927
- Doyle v. Mitchell Brothers Co.Supreme Court of the United States · 1918
- Commissioner v. WilcoxSupreme Court of the United States · 1946
- Sullenger v. CommissionerUnited States Tax Court · 1948
- Northwestern States Portland Cement Co. v. HustonCourt of Appeals for the Eighth Circuit · 1942
1 more not listed; retrieve them via the Exa API.
3Cited by34 opinions
- Dixie Dairies Corp. v. CommissionerUnited States Tax Court · 1980
- Max Sobel Wholesale Liquors v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1980
- Max Sobel Wholesale Liquors v. CommissionerUnited States Tax Court · 1977
- Molsen v. CommissionerUnited States Tax Court · 1985
- Alex v. CommissionerUnited States Tax Court · 1978
29 more not listed; retrieve them via the Exa API.