Fulton Foundry & Machine Co. v. Commissioner
United States Tax Court
Installation of mechanical equipment in petitioner's plant during a base period year held, on the facts, not shown to have interrupted or diminished "normal production, output, or operation" so as to entitle petitioner to relief under section 442 (a) (1), I. R. C. 1939.
1Opinion of the Court
OPINION.
Oppee, Judge:
Petitioner makes no claim that its base period income failed to reflect the normal operation of its business because of a change in the character of the business. It could not do this in any case because in order to avoid “subjective judgments” subsection (b) (4) of the predecessor section 722 was purposely and specifically removed from the relief afforded by the 1950 amendments:
The provision of relief in cases involving changes in management or operation has been eliminated for several reasons. Such changes do not of themselves prove that the character of the business…
2Cases cited3 opinions
- Triangle Raincoat Co. v. CommissionerUnited States Tax Court · 1952
- Matheson Co. v. CommissionerUnited States Tax Court · 1951
- D. L. Auld Co. v. CommissionerUnited States Tax Court · 1952
3Cited by8 opinions
- Oxford Paper Company v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1962
- United States Steel Corp. v. United StatesDistrict Court, S.D. New York · 1969
- United States Steel Corp. v. United StatesDistrict Court, S.D. New York · 1969
- Electric Materials Co. v. CommissionerUnited States Tax Court · 1956
- Electric Materials Co. v. CommissionerUnited States Tax Court · 1956
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