Bergstrom Paper Co. v. Commissioner
United States Tax Court
Excess Profits Tax -- Relief Under Sec. 722 (b) (4) -- Change in Character of Business. -- The petitioner's base period installation of a new filtration plant and its commitment to install new cone-type cookers for use in business of manufacturing paper resulted in a difference in its capacity for production and, with a new product, were the cause of the petitioner's average base period net income being an inadequate standard of normal earning, thus entitling the petitioner…
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Excess Profits Tax -- Relief Under Sec. 722 (b) (4) -- Change in Character of Business. -- The petitioner's base period installation of a new filtration plant and its commitment to install new cone-type cookers for use in business of manufacturing paper resulted in a difference in its capacity for production and, with a new product, were the cause of the petitioner's average base period net income being an inadequate standard of normal earning, thus entitling the petitioner to relief under section 722 (b) (4).
1Opinion of the Court
OPINION.
Murdock, Judge:
The Commissioner of Internal Revenue disallowed claims of the petitioner for excess profits tax relief under section 722 (b) (4) and (5) of the Internal Revenue Code of 1989 for the taxable years 1941,1942, and 1943.
Section 722 (b) (4) provides that the excess profits tax without the benefit of section 722 shall be considered excessive and discriminatory in the case of a taxpayer entitled to use the excess profits credit based on income, the average base period net income of which is an inadequate standard of normal earnings because the taxpayer,, during the base…
2Cases cited4 opinions
- 7-Up Ft. Worth Co. v. CommissionerUnited States Tax Court · 1947
- Neilsen Lithographing Co. v. CommissionerUnited States Tax Court · 1952
- Brown Paper Mill Co. v. CommissionerUnited States Tax Court · 1954
- Crowell-Collier Pub. Co. v. CommissionerUnited States Tax Court · 1956
3Cited by16 opinions
- Davenport Hosiery Mills, Inc. v. CommissionerUnited States Tax Court · 1957
- Peter J. Schweitzer, Inc. v. CommissionerUnited States Tax Court · 1958
- Schenley Industries, Inc. v. CommissionerUnited States Tax Court · 1964
- Connecticut Light & Power Co. v. CommissionerUnited States Tax Court · 1963
- Hydraulic Press Manufacturing Co. v. CommissionerUnited States Tax Court · 1956
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