National Grinding Wheel Co. v. Commissioner
United States Tax Court
Excess Profits Tax -- Relief under Section 722 (b) (4). -- The petitioner changed the character of its business by a substantial increase in its capacity for production during the base period. It has failed to establish a sufficient justification for the belief that it could have captured more business or increased its sales during any of the base period years, except for a few months in 1937, if it had had the capacity during the base period which it had at the end.
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Excess Profits Tax -- Relief under Section 722 (b) (4). -- The petitioner changed the character of its business by a substantial increase in its capacity for production during the base period. It has failed to establish a sufficient justification for the belief that it could have captured more business or increased its sales during any of the base period years, except for a few months in 1937, if it had had the capacity during the base period which it had at the end. Small amount of relief allowed upon the showing that some additional sales might have been made during a part of 1937 if there…
1Opinion of the Court
OPINION.
Mtjbdock, Judge:
Section 722 allows relief from excess profits tax in certain cases through substitution of a constructive average base period net income for the actual earnings of that period. The general rule of 722 (a) is that a taxpayer which establishes that its excess profits tax is excessive and discriminatory and establishes what would be a fair and just amount representing normal earnings to be used as a constructive average base period net income for the purpose of an excess profits tax based upon a comparison of normal earnings and earnings during an excess profits tax…
2Cited by57 opinions
- Farmers Creamery Co. v. CommissionerUnited States Tax Court · 1952
- Brown Paper Mill Co. v. CommissionerUnited States Tax Court · 1954
- Robinson Terminal Warehouse Corp. v. CommissionerUnited States Tax Court · 1953
- Midvale Co. v. CommissionerUnited States Tax Court · 1953
- East Texas Theatres, Inc. v. CommissionerUnited States Tax Court · 1952
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