Honokaa Sugar Co. v. Commissioner
United States Board of Tax Appeals
1. The petitioner, making its income tax returns on the accrual basis, estimated the amount which it was to receive on a consignment of sugar in 1937 and included the amount in its gross income for that year. The correct amount was determined in 1938. Held, that the correct amount should be substituted for the estimated amount in the redetermination of a deficiency in income tax for 1937. 2. In 1932 the petitioner had outstanding $320,000 first mortgage bonds.
Read the full summary
1. The petitioner, making its income tax returns on the accrual basis, estimated the amount which it was to receive on a consignment of sugar in 1937 and included the amount in its gross income for that year. The correct amount was determined in 1938. Held, that the correct amount should be substituted for the estimated amount in the redetermination of a deficiency in income tax for 1937. 2. In 1932 the petitioner had outstanding $320,000 first mortgage bonds. In that year and during the early part of 1933 it obtained the consent of owners of $304,000 of the bonds to an extension of the…
1Opinion of the Court
OPINION.
Smith :
This is a proceeding for tlie redetermination of a deficiency of $17,103.18 in income tax for 1937. The petition alleges that the *152respondent erred in the determination of the deficiency (1) in including in gross income an estimated amount to be received on a shipment of sugar during December 1937 instead of the correct amount which was determined in 1938, and (2) in denying a credit under section 26 (c) (1) of the Revenue Act of 1936 for the amount of the adjusted net income which could not be distributed to stockholders without violating a written contract executed by the…
2Cases cited3 opinions
- United States v. AndersonSupreme Court of the United States · 1926
- Spring City Foundry Co. v. CommissionerSupreme Court of the United States · 1934
- Helvering v. Northwest Steel Rolling Mills, Inc.Supreme Court of the United States · 1940
3Cited by5 opinions
- Mengel Co. v. GlennDistrict Court, W.D. Kentucky · 1943
- Central West Coal Co. v. CommissionerUnited States Board of Tax Appeals · 1941
- Honokaa Sugar Co. v. CommissionerUnited States Board of Tax Appeals · 1940
- L. O. Koven & Bro., Inc. v. CommissionerUnited States Board of Tax Appeals · 1942
- Warren Co. v. CommissionerUnited States Board of Tax Appeals · 1942