Ex-Marine Guards, Inc. v. Commissioner
United States Tax Court
Petitioner was incorporated on September 20, 1940, for the purpose of furnishing guards to California industrial plants whose products were important to the national defense program. It had $ 600 of invested capital. It experienced a net operating loss during its first 15 months of operation but realized taxable income in 1942, 1943, and 1944. It claimed excess profits tax relief under section 722 (c) for such years.
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Petitioner was incorporated on September 20, 1940, for the purpose of furnishing guards to California industrial plants whose products were important to the national defense program. It had $ 600 of invested capital. It experienced a net operating loss during its first 15 months of operation but realized taxable income in 1942, 1943, and 1944. It claimed excess profits tax relief under section 722 (c) for such years. Held, even assuming that petitioner established the existence of the qualifying conditions for relief under such section, it failed to establish a basis for reconstruction of…
1Opinion of the Court
OPINION.
Rice, Judge:
In order to qualify for relief under the provisions of section 722 (c), a taxpayer must establish the existence of one or more of the qualifying conditions enumerated in that section and, in addition, must show that its excess profits tax is excessive and discriminatory because of the existence of one or more such conditions. As we observed in Danco Co., 14 T. C. 276, 282 (1950):
The existence of one of the qualifying conditions specified in the statute is not sufficient to establish a taxpayer’s right to relief under section 722 (c), for the reason that the condition may…
2Cases cited3 opinions
- Danco Co. v. CommissionerUnited States Tax Court · 1950
- Fezandie & Sperrle v. Comm'rUnited States Tax Court · 1945
- Harry Lang Mfg. Co. v. CommissionerUnited States Tax Court · 1952
3Cited by1 opinion
- Ex-Marine Guards, Inc. v. CommissionerUnited States Tax Court · 1955