Sunbury Textile Mills, Inc. v. Commissioner
United States Tax Court
In March 1969 petitioner signed a contract to purchase 72 looms in three equal shipments. The contract gave petitioner a right to cancel the order as to the second and third shipments until October 1969 without incurring cancellation charges.
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In March 1969 petitioner signed a contract to purchase 72 looms in three equal shipments. The contract gave petitioner a right to cancel the order as to the second and third shipments until October 1969 without incurring cancellation charges. Held, the contract gave petitioner a power of "termination" rather than a power of "cancellation" as those terms are defined in Uniform Commercial Code sec. 2-106. Held, further, because petitioner possessed an unqualified right to abrogate the contract as to the second and third shipments, property included in such shipments did not constitute…
1Opinion of the Court
Wilbur, Judge:
Respondent determined a deficiency in petitioner’s Federal income tax of $840 for the taxable year ending April 30, 1970, and $69,607 for the taxable year ending April 30, 1971. These deficiencies were based on respondent’s determination that property on which the petitioner had claimed the investment credit did not qualify as "section 38 property.” Petitioner contends that such property was acquired pursuant to a contract which was binding on April 18, 1969, and which therefore qualified for the investment credit as pre-termination property under section 49(b).1 Respondent…
2Cases cited6 opinions
- Estate of Craft v. CommissionerUnited States Tax Court · 1977
- Mamula v. McCullochCalifornia Court of Appeal · 1969
- Gainsboro v. ShafferMassachusetts Supreme Judicial Court · 1959
- Sartori v. CommissionerUnited States Tax Court · 1976
- Hampton v. Commercial Credit Corp.Montana Supreme Court · 1946
1 more not listed; retrieve them via the Exa API.
3Cited by4 opinions
- Sunbury Textile Mills, Inc. v. Commissioner of Internal RevenueCourt of Appeals for the Third Circuit · 1978
- Erving Paper Mills Corp. v. CommissionerUnited States Tax Court · 1979
- Erving Paper Mills Corp. v. CommissionerUnited States Tax Court · 1979
- Sunbury Textile Mills, Inc. v. CommissionerUnited States Tax Court · 1977