Glenshaw Glass Co. v. Commissioner
United States Tax Court
Payment of royalties during base period because of patent injunction obtained against petitioner just prior to its base period, the fraudulent nature of which became manifest by close of base period, held to qualify petitioner for relief under section 722 (b) (5) of the Internal Revenue Code of 1939. Constructive average base period net income determined.
1Opinion of the Court
OPINION.
Ajrtjndell, Judge:
Immediately prior to October 1934, petitioner was manufacturing glass containers by means of a Shawkee feeder. That feeder had been developed by petitioner and others in the glass industry in an effort to be relieved from the domination of Hartford-Empire patents and the payment of royalties under these patents. Petitioner was in the process of replacing all of its royalty-paying equipment with royalty-free Shawkee feeders. In October 1934, Hartford-Empire was successful in obtaining an injunction against petitioner in the Federal court, prohibiting its use of its…
2Cases cited6 opinions
- Granite Constr. Co. v. CommissionerUnited States Tax Court · 1952
- Clinton Carpet Co. v. CommissionerUnited States Tax Court · 1950
- Ainsworth Mfg. Corp. v. CommissionerUnited States Tax Court · 1954
- Alexandria Amusement Corp. v. CommissionerUnited States Tax Court · 1951
- Constitution Publishing Co. v. CommissionerUnited States Tax Court · 1954
1 more not listed; retrieve them via the Exa API.
3Cited by1 opinion
- Glenshaw Glass Co. v. CommissionerUnited States Tax Court · 1955