Mine & Smelter Supply Co. v. Commissioner
United States Tax Court
Abnormality -- Class -- Section 711 (b) (1) (J) (i) and (K), I. R. C. -- In base period year 1937 petitioner, for the first time, issued to its executives and certain other key personnel a stock bonus, amounting to 28.01 per cent of its outstanding capital stock and having an aggregate par value in excess of 100 per cent of the basic salaries of those participants.
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Abnormality -- Class -- Section 711 (b) (1) (J) (i) and (K), I. R. C. -- In base period year 1937 petitioner, for the first time, issued to its executives and certain other key personnel a stock bonus, amounting to 28.01 per cent of its outstanding capital stock and having an aggregate par value in excess of 100 per cent of the basic salaries of those participants. The bonus was for the primary purpose of cementing the relationship and continued employment of the participants through giving them a stock ownership interest in the business, and, for a further purpose of partially rewarding them…
1Opinion of the Court
OPINION.
Tyson, Judge:
The question presented is whether, in determining petitioner’s average base period net income for the purpose of computing its excess profits credit under the income method for the taxable years 1941 and 1942, the petitioner is entitled to an adjustment of its 1937 income through the elimination from and consequent restoration to base period income of an abnormal deduction under the provisions of section 711 (b) (1) (J) (i) and (K), Internal Revenue Code.1 More specifically, petitioner contends that the character of the 1937 stock bonus was such that it constituted a…
2Cases cited7 opinions
- William Leveen Corp. v. CommissionerUnited States Tax Court · 1944
- Green Bay Lumber Co. v. CommissionerUnited States Tax Court · 1944
- Arrow-Hart & Hegeman Electric Co. v. CommissionerUnited States Tax Court · 1946
- Harris Hardwood Co. v. CommissionerUnited States Tax Court · 1947
- City Auto Stamping Co. v. CommissionerUnited States Tax Court · 1946
2 more not listed; retrieve them via the Exa API.
3Cited by16 opinions
- Consolidated Apparel Co. v. CommissionerUnited States Tax Court · 1952
- Crowell-Collier Pub. Co. v. CommissionerUnited States Tax Court · 1956
- McKay Machine Co. v. CommissionerUnited States Tax Court · 1957
- National Biscuit Co. v. CommissionerUnited States Tax Court · 1957
- The Electric Materials Company v. Commissioner of Internal RevenueCourt of Appeals for the Third Circuit · 1957
11 more not listed; retrieve them via the Exa API.