Central Bag Co. v. Commissioner

OPINION.

Habron, Judge:

In this case petitioner’s excess profits tax liability for the taxable years was determined by using an average base period net income of $38,924.48. This amount was computed under section 713(f)(6) and (7), which is the so-called growth formula. This statutory formula increased the excess profits credit petitioner would have otherwise had since its average base period net income, as adjusted by respondent, was $30,394.17.

In its applications for relief and in its petition, the petitioner claimed that it was entitled to $158,989.72 as a fair and just amount representing…