B. C. Cook & Sons, Inc. v. Commissioner
United States Tax Court
A decision of this Court allowed a corporation an embezzlement loss deduction for 1965. A portion of said loss had been included in the corporation's cost of goods sold for the years 1958 through 1961. After the statute of limitations had run, respondent asserted a deficiency for those years pursuant to secs. 1311 through 1314. Held: An overstatement of cost of goods sold is not a "deduction" within the meaning of sec. 1312(2). Respondent is barred from asserting a…
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A decision of this Court allowed a corporation an embezzlement loss deduction for 1965. A portion of said loss had been included in the corporation's cost of goods sold for the years 1958 through 1961. After the statute of limitations had run, respondent asserted a deficiency for those years pursuant to secs. 1311 through 1314. Held: An overstatement of cost of goods sold is not a "deduction" within the meaning of sec. 1312(2). Respondent is barred from asserting a deficiency by sec. 6501.
1Opinion of the Court
OPINION
Sterrett, Judge:
The respondent determined deficiencies in petitioner’s Federal income taxes for the fiscal years ended September 30, 1958, September 30, 1959, September 30, 1960, and September 30, 1961. The only issue in controversy is whether respondent is entitled to adjust petitioner’s Federal income tax liability for those years pursuant to sections 1311 through 1314.
Some of the facts have been stipulated and are so found. The stipulation of facts, together with the exhibits attached thereto, are incorporated herein by this reference.
B. C. Cook & Sons, Inc. (hereinafter…
2Cases cited8 opinions
- Atlantic Cleaners & Dyers, Inc. v. United StatesSupreme Court of the United States · 1932
- Commissioner of Internal Revenue v. Estate of Ellis Branson Ridgway, Deceased, Craig Sawyer Ridgway and Ellis Branson Ridgway, Jr., ExecutorsCourt of Appeals for the Third Circuit · 1961
- B. C. Cook & Sons, Inc. v. CommissionerUnited States Tax Court · 1972
- Brennen v. CommissionerUnited States Tax Court · 1953
- Curtis Gallery & Library, Inc. v. United StatesCourt of Appeals for the Ninth Circuit · 1968
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3Cited by34 opinions
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- Coastal Petroleum Refiners, Inc. v. CommissionerUnited States Tax Court · 1990
- Max Sobel Wholesale Liquors v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1980
- B. C. Cook & Sons, Inc. v. Commissioner of Internal RevenueCourt of Appeals for the Fifth Circuit · 1978
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