Arden-Rayshine Co. v. Commissioner
United States Board of Tax Appeals
Petitioner during 1936 received from certain of its vendors refunds representing that portion of amounts paid to such vendors in the purchase of cotton cloth as was attributable to the processing tax on the cotton used in the manufacture of the cloth and respondent has determined that petitioner is liable for the tax imposed by section 501(a)(2) on the net income from such refunds.
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Petitioner during 1936 received from certain of its vendors refunds representing that portion of amounts paid to such vendors in the purchase of cotton cloth as was attributable to the processing tax on the cotton used in the manufacture of the cloth and respondent has determined that petitioner is liable for the tax imposed by section 501(a)(2) on the net income from such refunds. Held that petitioner, though not limited to any particular form of proof, must establish by adequate proof the facts essential to its defense against such tax; held, further, that the proof of record does not show…
1Opinion of the Court
*316OPINION.
Turner:
The tax herein is imposed by section 501 (a) (2) of the Revenue Act of 1936 in words as follows:
SEC. 5 01. TAX ON NET INCOME PROM CERTAIN SOURCES.(a) The following taxes shall be levied, collected, and paid for each taxable year (in addition to any other tax on net income), upon the net income of every person which arises from the sources specified below:
* * * * ❖ * *(2) A tax equal to 80 per centum of the net income from reimbursement received by such person from his vendors of amounts representing Federal excise-tax burdens included in prices paid by such person to such…
2Cases cited1 opinion
- United States v. ButlerSupreme Court of the United States · 1936
3Cited by7 opinions
- Pabst Air Conditioning Corp. v. CommissionerUnited States Tax Court · 1950
- Louisville Provision Co. v. CommissionerUnited States Tax Court · 1943
- Arden-Rayshine Co. v. CommissionerUnited States Board of Tax Appeals · 1941
- Bird v. CommissionerUnited States Tax Court · 1967
- Christian v. CommissionerUnited States Tax Court · 1963
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