Ralphs-Pugh Co. v. Commissioner
United States Tax Court
1. Petitioner is a corporation engaged in the business of selling, on its own account and as the factory representative of certain manufacturers, all types of rubber goods. Petitioner acquired "factory contract rights" from a partnership under such circumstances that the basis of the "factory contract rights" in the hands of petitioner was the same as their basis in the hands of the partnership.
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1. Petitioner is a corporation engaged in the business of selling, on its own account and as the factory representative of certain manufacturers, all types of rubber goods. Petitioner acquired "factory contract rights" from a partnership under such circumstances that the basis of the "factory contract rights" in the hands of petitioner was the same as their basis in the hands of the partnership. These "factory contract rights" represented contracts which had been entered into between the partnership and various manufacturers of rubber products giving the partnership the exclusive right to…
1Opinion of the Court
OPINION.
Harron, Judge:
Issue 1. — The main issue in this case is the amount of excess profits credit based upon invested capital to which petitioner is entitled in computing its excess profits tax liability for the fiscal year ended May 31, 1942. This, in turn, requires the ascertainment of petitioner’s equity invested capital under section 718 (a) (2) of the Internal Revenue Code,1 and specifically the ascertainment of the substituted basis of the so-called “factory contract rights” around which the present dispute is centered.
On April 1,1921, a partnership of the same name as petitioner…
2Cases cited4 opinions
- Welch v. HelveringSupreme Court of the United States · 1933
- Helvering v. GowranSupreme Court of the United States · 1937
- Boyd-Richardson Co. v. CommissionerUnited States Tax Court · 1945
- J.F. Johnson Lumber Co. v. CommissionerUnited States Tax Court · 1944
3Cited by11 opinions
- Mid-State Products Co. v. CommissionerUnited States Tax Court · 1954
- A B C Brewing Corp. v. CommissionerUnited States Tax Court · 1953
- Zellerbach Paper Co. v. CommissionerUnited States Tax Court · 1947
- Christman Co. v. CommissionerUnited States Tax Court · 1947
- A B C Brewing Corp. v. CommissionerUnited States Tax Court · 1953
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