Legal Opinion

Brown Shoe Co. v. Commissioner

United States Tax Court

Decided February 13, 1948No. Docket No. 11394PublishedCited by 11 opinions

1. Excess Profits Tax -- Equity Invested Capital -- Accumulated Earnings and Profits -- Section 718 (a) (4). -- Accumulated earnings and profits within the meaning of section 718 (a) (4) does not include cash and property transferred to a taxpayer by a community group to induce the petitioner to operate a factory in the community, since no profit or income was shown to result from the transfer. 2. Excess Profits Tax -- Equity Invested Capital -- Contribution to Capital --…

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1. Excess Profits Tax -- Equity Invested Capital -- Accumulated Earnings and Profits -- Section 718 (a) (4). -- Accumulated earnings and profits within the meaning of section 718 (a) (4) does not include cash and property transferred to a taxpayer by a community group to induce the petitioner to operate a factory in the community, since no profit or income was shown to result from the transfer. 2. Excess Profits Tax -- Equity Invested Capital -- Contribution to Capital -- Section 718 (a) (1), (2). -- Such a transaction does not create equity invested capital under section 718 (a) (1) or (2).…

1Opinion of the Court

OPINION.

Murdock, Judge:

The Commissioner determined deficiencies in excess profits tax of $58,235.09 and $85,748.37 for the fiscal years ended October 31, 1942 and 1943. The issues for decision are whether the Commissioner erred (a) in excluding from equity invested capital $971,031.01, representing money and buildings received from communities in which the petitioner operated factories, and (b) in disallowing depreciation on the buildings thus acquired and on others supposedly built with the funds thus acquired. The facts have been stipulated.

The petitioner, a corporation, filed its returns…

2Cases cited2 opinions

  1. Liberty Mirror Works v. CommissionerUnited States Tax Court · 1944
  2. McKay Products Corp. v. CommissionerUnited States Tax Court · 1947

3Cited by11 opinions

  1. Brown Shoe Co. v. CommissionerSupreme Court of the United States · 1950
  2. United States v. Chicago, Burlington & Quincy RailroadSupreme Court of the United States · 1973
  3. Commissioner v. Brown Shoe Co.Court of Appeals for the Eighth Circuit · 1949
  4. Carlisle Tire & Rubber Co. v. CommissionerCourt of Appeals for the Third Circuit · 1948
  5. Victory Glass, Inc. v. CommissionerUnited States Tax Court · 1948

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