Benson Hotel Corp. v. Commissioner
United States Tax Court
Petitioner is conceded by respondent to be qualified for relief under section 722(b)(4), I.R.C. 1939, from excess profits taxes because of a change in the character of its business resulting from the sale of a small hotel and purchase of a larger hotel during the base period.
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Petitioner is conceded by respondent to be qualified for relief under section 722(b)(4), I.R.C. 1939, from excess profits taxes because of a change in the character of its business resulting from the sale of a small hotel and purchase of a larger hotel during the base period. The relief granted by the Commissioner held to be inadequate and a constructive average base period net income was determined for each of petitioner's fiscal years ended May 31, 1942, through May 31, 1946. The variable credit rule is applied to determine a constructive average base period net income for petitioner's…
1Opinion of the Court
OPINION.
Kern, Judge:
The respondent has determined that the petitioner is eligible for relief under section 722(b) (4) 3 as a result of a change in the character of petitioner’s business during its base period, which began on June 1, 1936, and ended on May 31, 1940. From 1933 to 1938 the petitioner operated a small hotel of approximately 100 rooms in Kokomo, Indiana. During January 1939 the petitioner acquired the Washington, a hotel of about 240 rooms, in Indianapolis, Indiana, and disposed of the hotel in Kokomo. At the same time the petitioner planned and began to carry out a program of…
2Cases cited1 opinion
- Superior Valve & Fittings Co. v. CommissionerUnited States Tax Court · 1952
3Cited by1 opinion
- Benson Hotel Corp. v. CommissionerUnited States Tax Court · 1961