Polak's Frutal Works, Inc. v. Commissioner
United States Tax Court
1. Held, Frutal Export Company, a partnership, and its successor, Frutal Export Company, Inc., were, during the taxable years involved herein, bona fide business enterprises, recognizable for tax purposes, separate and distinct from the business conducted by Polak's Frutal Works, Inc. 2. Held, no part of the respective incomes of the two export companies constituted income of Polak's Frutal Works, Inc., or is allocable thereto under section 45, Internal Revenue Code. 3.…
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1. Held, Frutal Export Company, a partnership, and its successor, Frutal Export Company, Inc., were, during the taxable years involved herein, bona fide business enterprises, recognizable for tax purposes, separate and distinct from the business conducted by Polak's Frutal Works, Inc. 2. Held, no part of the respective incomes of the two export companies constituted income of Polak's Frutal Works, Inc., or is allocable thereto under section 45, Internal Revenue Code. 3. Reasonableness of compensation paid by Polak's Frutal Works, Inc., to various parties during each of the taxable years,…
1Opinion of the Court
OPINION.
Van Foss an, Judge:
The first question for decision is whether respondent is correct in his determination that the incomes respectively reported by Export and its successor, Export, Inc., in the years involved are attributable to Frutal.
Respondent first takes the position that the two entities should be entirely disregarded for tax purposes and that the incomes reported by each, after proper adjustment to the calendar year basis, should be included within Frutal’s taxable income under the broad provisions of section 22 (a), Internal Revenue Code. In the alternative, respondent argues…
2Cases cited9 opinions
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- Chisholm v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1935
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