Pacific Far East Line, Inc. v. United States

This case is presented on cross motions for partial summary judgment and raises only one of three primary questions found in plaintiff’s petition. The basic issue before us here is identical to the one found in its companion case of Lykes Bros. Steamship Co. v. United States, ante at 354. As in Lykes Bros. Steamship Co., we have a taxpayer who claims the seven percent investment credit on its entire basis in certain vessels. As in Lykes Bros. Steamship Co., taxpayer has been allowed only a restricted credit, based on its post-1961 costs, because of defendant’s interpretation of section 48(b)…