Irwin B. Schwabe Co. v. Commissioner
United States Tax Court
Excess Profits Tax -- Relief Under Section 722 (b) (4). -- The taxpayer corporation is not entitled to relief under section 722 (b) (4) since it has failed to establish that a fair and just amount representing normal earnings to be used as a constructive base period net income would exceed its average base period net income as determined under the growth formula.
1Opinion of the Court
OPINION.
MtjRdock, Judge-.
The petitioner claims relief under section 722 (b) (4). It has been stipulated that this petitioner is entitled to use the excess profits credit based on income. The average of the normal earnings of such a taxpayer for a base period are compared with its earnings for the taxable year in determining its excess profits tax. This is accomplished through an excess profits credit. The issue in this case relates solely to the question of what amount should be regarded as normal average base period net income for the purpose of computing the excess profits credit based upon…
2Cases cited2 opinions
- Blum Folding Paper Box Co. v. CommissionerUnited States Tax Court · 1945
- Homer Laughlin China Co. v. CommissionerUnited States Tax Court · 1946
3Cited by49 opinions
- Wisconsin Farmer Co. v. CommissionerUnited States Tax Court · 1950
- Danco Co. v. CommissionerUnited States Tax Court · 1950
- Trunz, Inc. v. CommissionerUnited States Tax Court · 1950
- El Campo Rice Milling Co. v. CommissionerUnited States Tax Court · 1949
- Midvale Co. v. CommissionerUnited States Tax Court · 1953
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