Klein Chocolate Co. v. Commissioner
United States Tax Court
1. Petitioner is a manufacturer of dark sweet and milk chocolate coatings, cocoa, a byproduct, and a variety of chocolate confections. The raw materials used consist of basic cocoa beans, flavor cocoa beans, sugar, milk, and miscellaneous items such as flavoring, peanuts, salt, and the like.
Read the full summary
1. Petitioner is a manufacturer of dark sweet and milk chocolate coatings, cocoa, a byproduct, and a variety of chocolate confections. The raw materials used consist of basic cocoa beans, flavor cocoa beans, sugar, milk, and miscellaneous items such as flavoring, peanuts, salt, and the like. With its 1942 return, petitioner filed its application to price its inventories by the last-in, first-out method under section 22(d) of the Internal Revenue Code of 1939. Its closing inventories for 1946 and 1947, the taxable years herein, were taken on a last-in, first-out basis and by the dollar-value…
1Opinion of the Court
OPINION.
TURNER, Judge:
Except for the variations permitted and authorized under section 22(d) of the Internal Revenue Code of 1939, the use of inventories in the determination of income with respect to all years here pertinent is governed and controlled by the provisions of section 22(c) of the 1939 Code5 and the regulations thereunder, which statutory provisions and regulations have existed and continued without substantial change since the Revenue Act of 1918 and Regulations 45, promulgated pursuant thereto.
In section 22(c), it is provided that inventories are to be used whenever in the…
2Cases cited4 opinions
- Geometric Stamping Co. v. CommissionerUnited States Tax Court · 1956
- Hutzler Bros. Co. v. CommissionerUnited States Tax Court · 1947
- Basse v. CommissionerUnited States Tax Court · 1948
- Maloney v. HammondCourt of Appeals for the Ninth Circuit · 1949
3Cited by18 opinions
- Fox Chevrolet, Inc. (Maryland) v. CommissionerUnited States Tax Court · 1981
- Klein Chocolate Co. v. CommissionerUnited States Tax Court · 1961
- Amity Leather Products Co. v. CommissionerUnited States Tax Court · 1984
- Wendle Ford Sales, Inc. v. CommissionerUnited States Tax Court · 1979
- Pierce Ditching Co. v. CommissionerUnited States Tax Court · 1979
13 more not listed; retrieve them via the Exa API.