Peter J. Schweitzer, Inc. v. Commissioner
United States Tax Court
Held, petitioner changed the character of its business during the base period within the meaning of section 722 (b) (4), I. R. C. 1939, by reason of a difference in capacity for production or operation which was the result of a course of action to which petitioner was committed prior to January 1, 1940, and petitioner's excess profits tax computed without the benefit of section 722 results in an excessive and discriminatory tax.
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Held, petitioner changed the character of its business during the base period within the meaning of section 722 (b) (4), I. R. C. 1939, by reason of a difference in capacity for production or operation which was the result of a course of action to which petitioner was committed prior to January 1, 1940, and petitioner's excess profits tax computed without the benefit of section 722 results in an excessive and discriminatory tax. Held, further, a constructive average base period net income determined.
1Opinion of the Court
Tietjens, Judge:
The Commissioner denied petitioner’s claims for excess profits tax relief under section 722 of the Internal Bevenue Code of 1939 for the years 1940 through 1945.
The issues presented for decision are whether petitioner is qualified for such relief by reason of the fact that it was committed prior to January 1, 1940, to a change in capacity of its business and did not reach by the end of the base period the earning level it would have reached had it changed its capacity 2 years before it did, and if so, whether petitioner has established a fair and just amount representing…
2Cases cited5 opinions
- East Texas Motor Freight Lines v. CommissionerUnited States Tax Court · 1946
- Neilsen Lithographing Co. v. CommissionerUnited States Tax Court · 1952
- Springfield Tablet Mfg. Co. v. CommissionerUnited States Tax Court · 1954
- Bergstrom Paper Co. v. CommissionerUnited States Tax Court · 1956
- Davenport Hosiery Mills, Inc. v. CommissionerUnited States Tax Court · 1957
3Cited by8 opinions
- Lansburgh & Bro. v. CommissionerUnited States Tax Court · 1958
- Copco Steel & Engineering Co. v. CommissionerUnited States Tax Court · 1958
- Duke Power Co. v. CommissionerUnited States Tax Court · 1967
- Simplicity Mfg. Co. v. CommissionerUnited States Tax Court · 1960
- Copco Steel & Engineering Co. v. CommissionerUnited States Tax Court · 1958
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