Deltox Grass Rug Co. v. Commissioner
United States Board of Tax Appeals
1. Special assessment allowed under section 328, as petitioner acquired a mixture of tangibles and intangibles, the respective values for which can not be determined, and as development costs over a long period of time were charged to expense and the accounting method used precludes the restoration of such costs to invested capital. 2. Where a petitioner, entitled to relief under section 328, introduces uncontroverted evidence showing the average tax of all corporations…
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1. Special assessment allowed under section 328, as petitioner acquired a mixture of tangibles and intangibles, the respective values for which can not be determined, and as development costs over a long period of time were charged to expense and the accounting method used precludes the restoration of such costs to invested capital. 2. Where a petitioner, entitled to relief under section 328, introduces uncontroverted evidence showing the average tax of all corporations engaged in the same business, the excess-profits tax should be computed at the rate fixed by the comparatives of record. 3.…
1Opinion of the Court
*815OPINION.
Milliken :
Respondent avers that the patents owned by petitioner on March 1, 1913, had no fair market value on that date, but has introduced no evidence in support of such averment. A consideration of the evidence convinces us that the patents were of great value. On March 1, 1913, the patents owned by petitioner had been sustained by the courts. See Oshkosh Grass Matting Co. v. Waite Grass Carpet Co., 194 Fed. 885. By that date the grass-rug industry had passed the experimental stage and had taken its place as one of the great commercial industries. Petitioner, with its patents, was…
2Cases cited1 opinion
- Oshkosh Grass Matting Co. v. Waite Grass Carpet Co.U.S. Circuit Court for the District of Eastern Wisconsin · 1912
3Cited by4 opinions
- Wheelock v. CommissionerUnited States Board of Tax Appeals · 1933
- Deltox Grass Rug Co. v. CommissionerUnited States Board of Tax Appeals · 1927
- Grand Rapids Show Case Co. v. CommissionerUnited States Board of Tax Appeals · 1928
- J. G. Curtis Leather Co. v. CommissionerUnited States Board of Tax Appeals · 1928