Industrial Cotton Mills Co. v. Commissioner
United States Board of Tax Appeals
One corporation owned all of the stock of another corporation during the first six months of the taxable year. At the end of that time the two corporations were consolidated or merged into one. Held, there was no affiliation during the last six months of the year, and one consolidated return for the entire year was not proper.
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One corporation owned all of the stock of another corporation during the first six months of the taxable year. At the end of that time the two corporations were consolidated or merged into one. Held, there was no affiliation during the last six months of the year, and one consolidated return for the entire year was not proper. A net loss of one of the companies for the preceding year may be deducted only from its net income for the first six months of the taxable year here in question.
1Opinion of the Court
*652OPINION.
Muedock :
The respondent was allowed to amend his answer after the hearing to claim that a redetermination of the deficiencies should be made on the basis of an affiliation beginning February 9 and ending June 30,1922. The proof on this point is not as clear as it might be, but it seems that at some time in 1921 the creditors’ committee of the Blue Buckle Cotton Mills, Inc. acquired the right to have all of the stock of the Blue Buckle Cotton Mills, Inc. transferred to its nominee; this nominee was the Industrial Cotton Mills Company, Inc.; and the committee had all of the certificates…
2Cases cited2 opinions
- Lucas v. American Code Co.Supreme Court of the United States · 1930
- Bankers' Trust Co. v. BowersCourt of Appeals for the Second Circuit · 1923
3Cited by7 opinions
- Wolverine Petroleum Corp. v. CommissionerUnited States Board of Tax Appeals · 1934
- Miami Nat'l Bank v. CommissionerUnited States Tax Court · 1977
- Manufacturers Trust Co. v. CommissionerUnited States Board of Tax Appeals · 1933
- Industrial Cotton Mills Co. v. CommissionerUnited States Board of Tax Appeals · 1931
- Manufacturers Trust Co. v. CommissionerUnited States Board of Tax Appeals · 1933
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