W. F. Trimble & Sons Co. v. Commissioner
United States Tax Court
1. The petitioner, engaged in long term contracts, kept its books and prepared its Federal income tax returns upon a basis of billing clients, in most cases, in accordance with engineers' determinations of percentage of work completed, and deducting therefrom expenses actually incurred. Compensating adjustments were made in the year of completion of contract.
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1. The petitioner, engaged in long term contracts, kept its books and prepared its Federal income tax returns upon a basis of billing clients, in most cases, in accordance with engineers' determinations of percentage of work completed, and deducting therefrom expenses actually incurred. Compensating adjustments were made in the year of completion of contract. Held, that petitioner's method clearly reflected income and that the statute of limitation had run, as to one taxable year, upon the assessment made. 2. Held that petitioner has not shown error in computation of depreciation.
1Opinion of the Court
OPINION.
Dinsey, Judge:
Three questions here are presented: Has the statute of limitations run as to assessment for the year 1935? Did the respondent err in denying the depreciation claimed by the petitioner? Did he err in adding to the petitioner’s income on the ground that the petitioner’s system of computing income from long term contracts did not clearly reflect income ?
The three-year period of limitations upon assessment had admittedly expired on the date of the deficiency notice. Therefore the respondent had the burden of showing an exception to section 275 (a), Revenue Act of 1934,1…
Also in this document: Concurrence.
2Cases cited3 opinions
- Lucas v. American Code Co.Supreme Court of the United States · 1930
- Brown v. HelveringSupreme Court of the United States · 1934
- Reis v. CommissionerUnited States Tax Court · 1942
3Cited by14 opinions
- Carter v. CommissionerUnited States Tax Court · 1947
- Deakman-Wells Co. v. CommissionerUnited States Tax Court · 1953
- Johnson, Drake & Piper, Inc. v. United StatesCourt of Appeals for the Eighth Circuit · 1973
- Ketcham v. CommissionerUnited States Tax Court · 1943
- Berger Engineering Co. v. CommissionerUnited States Tax Court · 1961
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