D. Loveman & Son Export Corp. v. Commissioner
United States Tax Court
1. During the tax years in which the issue is presently in controversy, petitioners, which used inventories priced at cost or market whichever is lower, valued their steel in accordance with the posted prices of the major steel-producing mills. However, by reason of governmental controls and shortages occasioned by the Korean conflict, petitioners were not able to purchase steel from the major mills.
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1. During the tax years in which the issue is presently in controversy, petitioners, which used inventories priced at cost or market whichever is lower, valued their steel in accordance with the posted prices of the major steel-producing mills. However, by reason of governmental controls and shortages occasioned by the Korean conflict, petitioners were not able to purchase steel from the major mills. Instead, steel was obtained primarily from one of a number of smaller mills at premium prices (considerably higher than the prices of the major mills), and, under OPS regulations, such steel…
1Opinion of the Court
OPINION.
Rattm, Judge:
1. Valuation of First Quality Inventory. — We think petitioners erred, during the taxable years in question, in continuing to value their first quality inventories by reference to the published mill price of the major mill producers.
Section 22(c), I.R.C. 1939, provides for the use of inventories by taxpayers “upon such basis as the Commissioner, with the approval of the Secretary, may prescribe as conforming as nearly as may be to the best accounting practice in the trade or business and as most clearly reflecting the income.” Pursuant to this delegation, the Commissioner…
2Cases cited19 opinions
- Algernon Blair, Inc. v. CommissionerUnited States Tax Court · 1958
- Wood v. CommissionerCourt of Appeals for the Fifth Circuit · 1957
- Howell Turpentine Co. v. CommissionerUnited States Tax Court · 1946
- Cleveland Automobile Co. v. United StatesCourt of Appeals for the Sixth Circuit · 1934
- Gerber v. CommissionerUnited States Tax Court · 1959
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3Cited by60 opinions
- Thor Power Tool Co. v. CommissionerSupreme Court of the United States · 1979
- Electric & Neon, Inc. v. CommissionerUnited States Tax Court · 1971
- Dean v. CommissionerUnited States Tax Court · 1961
- Ft. Howard Paper Co. v. CommissionerUnited States Tax Court · 1967
- Dearborn Gage Co. v. CommissionerUnited States Tax Court · 1967
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