Kentucky Whip & Collar Co. v. Commissioner
United States Tax Court
Petitioner having had losses in all of the base period years except one, in filing excess profits tax returns for its fiscal years ending April 30, 1943, 1944, and 1945, used excess profits credits based on invested capital. Petitioner filed applications for relief under section 722 of the Code based on 722 (b) (1) or (2) and (4). The Commissioner denied relief and petitioner has appealed from such denial.
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Petitioner having had losses in all of the base period years except one, in filing excess profits tax returns for its fiscal years ending April 30, 1943, 1944, and 1945, used excess profits credits based on invested capital. Petitioner filed applications for relief under section 722 of the Code based on 722 (b) (1) or (2) and (4). The Commissioner denied relief and petitioner has appealed from such denial. Held, petitioner has not established its grounds for relief under either 722 (b) (1) or (2) or (4) and the Commissioner's determination is sustained.
1Opinion of the Court
OPINION.
Black, Judge:
Petitioner’s average base period net income for its four base period years, 1936, 1937, 1938, and 1939 was a minus quantity. It had net income in only one of the base period years, namely, 1936 and its net income for that year was only $6,812.84. It had losses for the other three base period years and when all four of the years are averaged up, petitioner had an average loss of $16,796.48 during the base period years. Such being the case, it is to petitioner’s advantage to use an excess profits credit based on invested capital. Those credits were $11,165.33 for the fiscal…
2Cases cited1 opinion
- Toledo Stove & Range Co. v. CommissionerUnited States Tax Court · 1951
3Cited by11 opinions
- Constitution Publishing Co. v. CommissionerUnited States Tax Court · 1954
- Interstate Milling Co. v. CommissionerUnited States Tax Court · 1959
- Dow Jones & Co. v. CommissionerUnited States Tax Court · 1963
- Hall Lithographing Co. v. CommissionerUnited States Tax Court · 1956
- Constitution Publishing Co. v. CommissionerUnited States Tax Court · 1954
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