E. J. Scheer, Inc. v. Commissioner
United States Tax Court
For its fiscal years ending January 31, 1942, January 31, 1943, and January 31, 1944, petitioner consistently took inventories of its merchandise on the basis of its "worth", as determined by petitioner. Respondent restored the inventories for the years ending January 31, 1943 and January 31, 1944 to a cost basis, using the closing inventory of the former as the opening inventory of the latter year.
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For its fiscal years ending January 31, 1942, January 31, 1943, and January 31, 1944, petitioner consistently took inventories of its merchandise on the basis of its "worth", as determined by petitioner. Respondent restored the inventories for the years ending January 31, 1943 and January 31, 1944 to a cost basis, using the closing inventory of the former as the opening inventory of the latter year. He did not restore petitioner's opening inventory for the former year to a cost basis. Held, that respondent's action resulted in a distortion of income and is not approved.
1Opinion of the Court
E. J. Scheer, Inc., v. Commissioner.
E. J. Scheer, Inc. v. Commissioner
Docket Nos. 19891, 20423.
United States Tax Court
1949 Tax Ct. Memo LEXIS 55; 8 T.C.M. (CCH) 917; T.C.M. (RIA) 49250;
October 7, 1949
For its fiscal years ending January 31, 1942, January 31, 1943, and January 31, 1944, petitioner consistently took inventories of its merchandise on the basis of its "worth", as determined by petitioner. Respondent restored the inventories for the years ending January 31, 1943 and January 31, 1944 to a cost basis, using the closing inventory of the former as the opening inventory of the latter…
2Cases cited5 opinions
- Thomas Shoe Co. v. CommissionerUnited States Board of Tax Appeals · 1924
- Justus & Parker Co. v. CommissionerUnited States Board of Tax Appeals · 1928
- Reuben H. Donnelley Corp. v. CommissionerUnited States Board of Tax Appeals · 1931
- Sinsheimer Bros., Inc. v. CommissionerUnited States Board of Tax Appeals · 1926
- Wilson Furniture Co. v. CommissionerUnited States Board of Tax Appeals · 1928
3Cited by1 opinion
- Visintainer v. AllanDistrict Court, D. Colorado · 1961