Empire Constr. Co. v. Commissioner
United States Tax Court
1. Although petitioner qualified for relief under section 722(b) (2), I.R.C. 1939, by reason of abnormally low volume of business obtained during base period from the Baltimore & Ohio Railroad Company, which had been its most important customer over a long period, it has not shown a constructive average base period net income sufficiently high to yield credits in excess of those allowable under section 714. In its reconstruction it is not entitled to eliminate a loss…
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1. Although petitioner qualified for relief under section 722(b) (2), I.R.C. 1939, by reason of abnormally low volume of business obtained during base period from the Baltimore & Ohio Railroad Company, which had been its most important customer over a long period, it has not shown a constructive average base period net income sufficiently high to yield credits in excess of those allowable under section 714. In its reconstruction it is not entitled to eliminate a loss sustained upon the performance of a certain contract for the Pennsylvania Turnpike Commission. 2. Petitioner is required in the…
1Opinion of the Court
OPINION.
Raum, Judge:
Petitioner contends that it is entitled to excess profits tax relief under section 722(b)(2), I.R.C. 1939. This section, insofar as here pertinent,3 provides that the excess profits tax computed without the benefit of section 722 shall be considered to be excessive and discriminatory if the taxpayer’s average base period net income is an inadequate standard of normal earnings because “[t]he business of the taxpayer was depressed in the base period because of temporary economic circumstances unusual in the case of such taxpayer.” The material part of the applicable…
2Cases cited7 opinions
- Granite Constr. Co. v. CommissionerUnited States Tax Court · 1952
- California Vegetable Concentrates, Inc. v. CommissionerUnited States Tax Court · 1948
- Ainsworth Mfg. Corp. v. CommissionerUnited States Tax Court · 1954
- Stimson Mill Co. v. CommissionerUnited States Tax Court · 1946
- Stimson Mill Co. v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1947
2 more not listed; retrieve them via the Exa API.
3Cited by10 opinions
- A. Finkl & Sons Co. v. CommissionerUnited States Tax Court · 1962
- Natatorium Laundry Co. v. CommissionerUnited States Tax Court · 1959
- Schenley Industries, Inc. v. CommissionerUnited States Tax Court · 1964
- Dow Jones & Co. v. CommissionerUnited States Tax Court · 1963
- A. Finkl & Sons Co. v. CommissionerUnited States Tax Court · 1962
5 more not listed; retrieve them via the Exa API.