Electric Materials Co. v. Commissioner
United States Tax Court
Excess Profits Tax (Korean War) -- Adjustment for Abnormality -- Abandonment -- Consequence of Change in Manner of Operation of Business. -- Abandonment deduction in base period year 1946 denied disallowance for computation of excess profits credit for taxable years because abandonment was a consequence of change in the manner of operation of the business. I. R. C. 1939, sec. 433 (b) (10).
1Opinion of the Court
OPINION.
Murdock, Judge:
The Commissioner determined a deficiency of $705.16 in income tax for 1951, a deficiency of $1,022.88 in excess profits tax for 1950, and a deficiency of $392.65 in excess profits tax for 1951. The petitioner eliminated $23,871.38 for the base period year 1946 as an abandonment deduction in computing its excess profits tax credit on its returns for the taxable years. The issue for decision is whether it has shown that it meets the requirements of section 433(b) (10) (C). That section provides:
(O) Deductions of any class shall not be disallowed under such paragraph…
2Cases cited3 opinions
- William Leveen Corp. v. CommissionerUnited States Tax Court · 1944
- Gulf States Utilities Co. v. CommissionerUnited States Tax Court · 1951
- Fulton Foundry & Machine Co. v. CommissionerUnited States Tax Court · 1956
3Cited by2 opinions
- The Electric Materials Company v. Commissioner of Internal RevenueCourt of Appeals for the Third Circuit · 1957
- Electric Materials Co. v. CommissionerUnited States Tax Court · 1956