Gar Wood Industries, Inc. v. United States

MURRAH, Senior Circuit Judge.

The only question on appeal in this income tax refund case is whether, under undisputed facts, Gar Wood, an accrual basis taxpayer, should have included in its 1951 and 1952 income certain payments due under the terms of its government contracts but withheld by the Corps of Engineers pending redetermi-nation of the contract prices. Gar Wood took the position that the funds unilaterally withheld pending final redetermi-nation of the contract price in 1956 were taxable in that year and not before. The Commissioner disagreed and assessed a deficiency on the theory…