Pacific Grape Products Co. v. Commissioner
United States Tax Court
1. Petitioner, a canner of fruit products, reported its income on a calendar year accrual basis. On December 31 of each of the years 1939, 1940, and 1941, it had billed buyers for goods on hand which it had in those years contracted to sell but for which the buyers had not yet issued shipping instructions; however, the goods were not labeled, cased, shipped out, or paid for until later taxable periods.
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1. Petitioner, a canner of fruit products, reported its income on a calendar year accrual basis. On December 31 of each of the years 1939, 1940, and 1941, it had billed buyers for goods on hand which it had in those years contracted to sell but for which the buyers had not yet issued shipping instructions; however, the goods were not labeled, cased, shipped out, or paid for until later taxable periods. When it billed the goods the petitioner recorded on its books as of the same dates sales of these products and recorded also the accrual of both the expense of brokerage fees incurred with…
1Opinion of the Court
OPINION.
Hill, Judge:
The first issue concerns the question whether petitioner erroneously reported accrued income from sales of certain unshipped and unpaid for goods in the taxable years in which it billed its buyers for such goods. Petitioner contends that, in accordance with its agreements with its buyers, sales took place and title to the goods which the buyers had not ordered out by the agreed billing dates passed to these buyers when the petitioner billed them for the. goods. In the alternative, the petitioner contends that regardless of the passage of title its method of accruing the…
2Cases cited8 opinions
- United States v. AndersonSupreme Court of the United States · 1926
- Security Flour Mills Co. v. CommissionerSupreme Court of the United States · 1944
- Dixie Pine Products Co. v. CommissionerSupreme Court of the United States · 1944
- Woodbine v. Van HornCalifornia Supreme Court · 1946
- Schiffman v. Richfield Oil Co.California Supreme Court · 1937
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3Cited by31 opinions
- E. W. Schuessler and Aline Schuessler v. Commissioner of Internal RevenueCourt of Appeals for the Fifth Circuit · 1956
- World Airways, Inc. v. CommissionerUnited States Tax Court · 1974
- Mooney Aircraft, Inc. v. United StatesCourt of Appeals for the Fifth Circuit · 1970
- Fifth Ave. Coach Lines,Inc. v. CommissionerUnited States Tax Court · 1959
- Pacific Grape Products Co., a Corporation v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1955
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