Atzingen-Whitehouse Dairy, Inc. v. Commissioner
United States Tax Court
1. In computing milk company's gross income there must be excluded from its receipts amounts of rebates which it made to its customers pursuant to oral arrangements with them, notwithstanding that such rebates were in violation of State law.
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1. In computing milk company's gross income there must be excluded from its receipts amounts of rebates which it made to its customers pursuant to oral arrangements with them, notwithstanding that such rebates were in violation of State law. Pittsburgh Milk Co., 26 T.C. 707, followed. 2. Amount of disputed cash rebates for 1955 and 1956 determined. 3. A payment of $ 7,000 to the Office of Milk Industry of New Jersey as an "adjustment" for willful violation of minimum price law held not deductible as "ordinary and necessary" business expense. 4. Legal fee of $ 6,000 paid for services…
1Opinion of the Court
OPINION.
Raum, Judge:(1) We have concluded on the evidence that the actual prices at which petitioner sold its products were the invoice prices minus the discounts agreed upon between petitioner and its customers. Accordingly, the problem before us is not whether such discounts are deductible as “ordinary and necessary” business expenses from gross income in arriving at net income, cf. Tank Truck Rentals v. Commissioner, 356 U.S. 30; rather it is whether the discounts must be taken into account in determining the amount of gross income chargeable to petitioner in the first instance. Cf. Lela…
2Cases cited7 opinions
- Cohan v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1930
- Tank Truck Rentals, Inc. v. CommissionerSupreme Court of the United States · 1958
- Sullenger v. CommissionerUnited States Tax Court · 1948
- Jerry Rossman Corporation v. Commissioner of Int. Rev.Court of Appeals for the Second Circuit · 1949
- Boyle, Flagg & Seaman, Inc. v. CommissionerUnited States Tax Court · 1955
2 more not listed; retrieve them via the Exa API.
3Cited by19 opinions
- Woodward v. CommissionerSupreme Court of the United States · 1970
- Dixie Dairies Corp. v. CommissionerUnited States Tax Court · 1980
- Max Sobel Wholesale Liquors v. CommissionerUnited States Tax Court · 1977
- Lychuk v. Comm'rUnited States Tax Court · 2001
- Adolf Meller Co. v. United StatesUnited States Court of Claims · 1979
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