Iten Biscuit Co. v. Commissioner
United States Board of Tax Appeals
1. The petitioner sold the greater part of its products in can containers, so-called "returnable packages," and included a separate and uniform charge for such containers in the invoices to its customers. Such sales were made with the understanding that containers would be repurchased upon the return of the empty cans.
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1. The petitioner sold the greater part of its products in can containers, so-called "returnable packages," and included a separate and uniform charge for such containers in the invoices to its customers. Such sales were made with the understanding that containers would be repurchased upon the return of the empty cans. Held, upon the evidence, that there was an actual transfer of such ownership and that the containers, not being owned by the petitioner or used in its trade or business, are not assets on which taxpayer is entitled to deductions for depreciation. 2. Respondent's claim for an…
1Opinion of the Court
*877OPINION.
Lansdon :
The first and most important question for consideration is whether the petitioner is entitled to a deduction, in computing taxable net income of each of the years in controversy, for depreciation of returnable cans in which its products are sold and shipped to its customers. If so, the amounts of such deductions have been agreed upon and stipulated by the parties.
The pertinent provisions of the Revenue Acts of 1921, 1924 and 1926 are as follows:
Sec. 234. (a) That in computing the net income of a corporation subject to the tax imposed by section 230 there shall be allowed as…
2Cases cited4 opinions
- United States v. LudeySupreme Court of the United States · 1927
- Sturm v. BokerSupreme Court of the United States · 1893
- Hews v. Equitable Life Assur. SocietyCourt of Appeals for the Third Circuit · 1906
- First National Bank v. State ex rel. O'BrienNebraska Supreme Court · 1903
3Cited by2 opinions
- Iten Biscuit Co. v. CommissionerUnited States Board of Tax Appeals · 1932
- State Department of Revenue v. Adolph Coors Co.Supreme Court of Colorado · 1986