Pelton & Crane Co. v. Commissioner
United States Tax Court
1. Petitioner, a manufacturer of dental and surgical equipment, filed claims for relief under section 722 (a), (b) (1) and ( 4), Internal Revenue Code. During the base period petitioner had one 10-day strike, three 4-day strikes and occasional "slowdowns."
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1. Petitioner, a manufacturer of dental and surgical equipment, filed claims for relief under section 722 (a), (b) (1) and ( 4), Internal Revenue Code. During the base period petitioner had one 10-day strike, three 4-day strikes and occasional "slowdowns." Held, the strikes and "slowdowns" did not cause petitioner's average base period net income to be an inadequate standard of normal earnings within the meaning of section 722 (b) (1). 2. Petitioner placed the E & O light on the market in 1939. Held, the E & O light was not a different product within the meaning of section 722 (b) (4).
1Opinion of the Court
OPINION.
Section (5) (1). Unusual Event.
Withey, Judge:
Petitioner bases its claim for relief on section 722 (a),1 (b) (l),2 (2), and (4) of the Internal Revenue Code. We have stated in D. L. Auld Co., 17 T. C. 1199, and Triangle Raincoat Co., 19 T. C. 548, that strikes are the type of events coming within the ambit of subsection (b) (1).
Respondent concedes that petitioner experienced a 10-day strike in May 1937 but contends that the mere fact of a strike does not of itself entitle petitioner to relief. In order to qualify for the use of a constructive average base period net income in the…
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