Tri-State Beverage Distributors, Inc. v. Commissioner
United States Tax Court
1. Petitioner, a wholesale liquor dealer, allowed discounts from the list price to its customers in order to meet competition during the base period years 1936-1939. The discounts were known at the time of the sale and were not quantity or cash discounts. Petitioner contends these discounts are abnormal deductions under section 711 (b) (1) (J), I. R. C. 1939, and should be restored to the excess profits net income for the base period years.
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1. Petitioner, a wholesale liquor dealer, allowed discounts from the list price to its customers in order to meet competition during the base period years 1936-1939. The discounts were known at the time of the sale and were not quantity or cash discounts. Petitioner contends these discounts are abnormal deductions under section 711 (b) (1) (J), I. R. C. 1939, and should be restored to the excess profits net income for the base period years. Held, the discounts are adjustments of the sales price and are made to arrive at gross income; they are not deductions from gross income and not…
1Opinion of the Court
Tri-State Beverage Distributors, Inc., Petitioner, v. Commissioner of Internal Revenue, Respondent
Tri-State Beverage Distributors, Inc. v. Commissioner
Docket No. 32887
United States Tax Court
27 T.C. 1026; 1957 U.S. Tax Ct. LEXIS 234;
March 28, 1957, Filed
Decision will be entered for the respondent.
1. Petitioner, a wholesale liquor dealer, allowed discounts from the list price to its customers in order to meet competition during the base period years 1936-1939. The discounts were known at the time of the sale and were not quantity or cash discounts. Petitioner contends these discounts are…
2Cases cited6 opinions
- Harlan Bourbon & Wine Co. v. CommissionerUnited States Tax Court · 1950
- Universal Optical Co. v. CommissionerUnited States Tax Court · 1948
- Tri-State Beverage Distributors, Inc. v. CommissionerUnited States Tax Court · 1957
- Seggerman Nixon Corp. v. CommissionerUnited States Tax Court · 1956
- Colorado Milling & Elevator Co. v. Commissioner of Internal RevenueCourt of Appeals for the Tenth Circuit · 1953
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