Grade a Market, Inc. v. Commissioner of Revenue Services

This action is an appeal by the plaintiff from a determination of the commissioner of revenue services (commissioner) disallowing the plaintiffs net operating loss carryover deduction on its corporation business tax return for the income year ending December 31, 1986. The issue in the present case is whether the surviving corporation, resulting from a statutory merger, can deduct from its income the operating loss carryover of the merged coiporations pursuant to General Statutes § 12-217 if there is a continuity of business enterprise between the corporations.

The following facts have been…