Michigan Chemical Corporation v. The Renegotiation Board

PHILLIPS, Circuit Judge.

This appeal is from the decision of the Tax Court of the United States reported at 49 T.C. 488. Reference is made to the opinion of the Tax Court for a detailed recitation of the facts, which will not be repeated here except to the extent necessary for purposes of this opinion. We affirm.

Late in 1955 nuclear research groups discovered that yttrium oxide possessed certain properties which might make it desirable as a reaction material. Appellant (Michigan Chemical) entered into a contract on May 10,1956, with the Atomic Energy Commission (AEC) to process yttrium oxide…