Basalt Rock Co. v. Commissioner
United States Tax Court
Where a corporation, which regularly computed income from long term contracts on the completed contract method of accounting and filed its income tax returns accordingly, exercised the election under section 736 (b), Internal Revenue Code, to compute its income from long term contracts for purposes of chapter 2-E on the percentage of completion method of accounting, held, that its "corporation surtax net income, computed under section 15" for the purpose of section 710 (a)…
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Where a corporation, which regularly computed income from long term contracts on the completed contract method of accounting and filed its income tax returns accordingly, exercised the election under section 736 (b), Internal Revenue Code, to compute its income from long term contracts for purposes of chapter 2-E on the percentage of completion method of accounting, held, that its "corporation surtax net income, computed under section 15" for the purpose of section 710 (a) (1) (B) is to be computed upon the percentage of completion method of accounting.
1Opinion of the Court
OPINION.
Disney, Judge:
The respondent determined a deficiency of $583,-003.64 in the petitioner’s excess profits tax liability for the year 1942. The petitioner claims an overpayment of excess profits tax in the sum of $935,575.38.
Several issues were raised in the pleadings, but all were settled by stipulation except one, viz.: Whether, for purposes of the so-called 80 per cent limitation provided in section 710 (a) (1) (B) of the Internal Revenue Code, the petitioner’s surtax net income should be computed according to the percentage of completion method or on the completed contract method,…
2Cases cited7 opinions
- Commissioner v. South Texas Lumber Co.Supreme Court of the United States · 1948
- Brewster v. GageSupreme Court of the United States · 1930
- Fawcus MacHine Co. v. United StatesSupreme Court of the United States · 1931
- Kimbrell's Home Furnishings, Inc. v. CommissionerUnited States Tax Court · 1946
- Mackin Corp. v. CommissionerUnited States Tax Court · 1946
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3Cited by13 opinions
- Lawrence v. CommissionerUnited States Tax Court · 1957
- J. L. Goodman Furniture Co. v. CommissionerUnited States Tax Court · 1948
- Sokol Bros. Furniture Co. v. Commissioner of Internal RevenueCourt of Appeals for the Fifth Circuit · 1950
- Farrel-Birmingham Co. v. United StatesUnited States Court of Claims · 1954
- Basalt Rock Co., Inc. v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1950
8 more not listed; retrieve them via the Exa API.