Kenyon Instrument Co. v. Commissioner
United States Tax Court
1. Petitioner was a subcontractor under United States war contracts. In 1943 petitioner came to "an agreement" with the Supervisory Cost Inspector, U. S. Navy, to the effect that petitioner had overcharged its customers certain amounts on work done in 1942. The "agreement" provided that petitioner would refund in quarterly payments, during 1943 and 1944, these overcharges. The refunds were paid accordingly.
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1. Petitioner was a subcontractor under United States war contracts. In 1943 petitioner came to "an agreement" with the Supervisory Cost Inspector, U. S. Navy, to the effect that petitioner had overcharged its customers certain amounts on work done in 1942. The "agreement" provided that petitioner would refund in quarterly payments, during 1943 and 1944, these overcharges. The refunds were paid accordingly. Held: These refunds were properly accruable in 1943 and respondent correctly disallowed a deduction of the payments made in 1944. 2. Petitioner computed and paid its New York State…
1Opinion of the Court
OPINION.
Van Fossan, Judge:
The first issue is whether the petitioner is entitled to a deduction in 1944 for repayments in that year of price adjustments on war contracts. The facts are not in dispute and may be summarized briefly as follows: In 1943 petitioner came to “an agreement” with the Office of the Supervisory Cost Inspector, U. S. Navy, to the effect that petitioner had overcharged its customers, who were prime contractors, for business done for them by petitioner in 1942. It was stated in a letter from the Cost Inspector to the petitioner that “as agreed to at the conference, you are…
2Cases cited11 opinions
- United States v. AndersonSupreme Court of the United States · 1926
- Security Flour Mills Co. v. CommissionerSupreme Court of the United States · 1944
- Helvering v. Russian Finance & Construction CorporationCourt of Appeals for the Second Circuit · 1935
- United States v. American Can Co.Supreme Court of the United States · 1930
- South Chester Tube Co. v. CommissionerUnited States Tax Court · 1950
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- Leonhart v. CommissionerUnited States Tax Court · 1968
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