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  • Wilkes-Barre Carriage Co., Inc. v. Commissioner of Internal Revenue, 332 F.2d 421, 2d Cir. (1964)

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    The court affirmed the Tax Court's determination of a deficiency in the taxpayer's 1943 excess profits tax. The taxpayer manufactured ordnance for the armed services during WWII. In 1943, the War Contract Price Adjustment Board determined the taxpayer's profits from war contracts were excessive by $3.7 million and ordered repayment, to be effected by a $3 million credit against excess profits tax and a $724k cash payment. While the cash payment was made, the taxpayer never paid the excess profits tax, so the credit was not applied. The court found no merit in the taxpayer's arguments, and that a deficiency exists since the taxpayer still owes the $3 million it was supposed to pay via credit against its excess profits tax

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    Filed: 1964-05-26 Precedential Status: Precedential Citations: 332 F.2d 421 Docket: 28775_1

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    The court affirmed the Tax Court's determination of a deficiency in the taxpayer's 1943 excess profits tax. The taxpayer manufactured ordnance for the armed services during WWII. In 1943, the War Contract Price Adjustment Board determined the taxpayer's profits from war contracts were excessive by $3.7 million and ordered repayment, to be effected by a $3 million credit against excess profits tax and a $724k cash payment. While the cash payment was made, the taxpayer never paid the excess profits tax, so the credit was not applied. The court found no merit in the taxpayer's arguments, and that a deficiency exists since the taxpayer still owes the $3 million it was supposed to pay via credit against its excess profits tax

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    Wilkes-Barre Carriage Co., Inc. v. Commissioner of Internal Revenue, 332 F.2d 421, 2d Cir. (1964)

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    The court affirmed the Tax Court's determination of a deficiency in the taxpayer's 1943 excess profits tax. The taxpayer manufactured ordnance for the armed services during WWII. In 1943, the War Contract Price Adjustment Board determined the taxpayer's profits from war contracts were excessive by $3.7 million and ordered repayment, to be effected by a $3 million credit against excess profits tax and a $724k cash payment. While the cash payment was made, the taxpayer never paid the excess profits tax, so the credit was not applied. The court found no merit in the taxpayer's arguments, and that a deficiency exists since the taxpayer still owes the $3 million it was supposed to pay via credit against its excess profits tax

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    of 2

    332 F.

    2d 421

    WILKES-BARRE CARRIAGE CO., Inc., Petitioner,


    v.
    COMMISSIONER OF INTERNAL REVENUE, Respondent.
    No. 462.
    Docket 28775.

    United States Court of Appeals Second Circuit.


    Argued May 13, 1964.
    Decided May 26, 1964.

    Fred R. Tansill of Goodwin, Rosenbaum, Meacham & White,


    Washington, D. C., for petitioner.
    Robert H. Bernstein, Atty. Dept. of Justice, Washington, D. C. (Louis F.
    Oberdorfer, Asst. Atty. Gen., Lee A. Jackson and I. Henry Kutz, Attys. on
    the brief), for respondent.
    Before KAUFMAN, HAYS and MARSHALL, Circuit Judges.
    PER CURIAM.

    We affirm a decision of the Tax Court determining a deficiency in taxpayer's


    excess profits tax for the year 1943.

    The taxpayer was engaged in the manufacture of ordnance for the armed
    services. After it had filed its return for 1943 but before it had paid in full its
    excess profits tax for that year, the War Contract Price Adjustment Board held
    its 1943 profits from war contracts to be excessive by $3,789,321 and ordered
    repayment of this amount. Under Section 3806(b) of the Internal Revenue Code
    of 1939, repayment was to be effected by means of a credit of $3,064,526.96 on
    its excess profits tax plus a cash payment of the balance of $724,794.04. The
    latter balance has been satisfied but the payment which consists of a credit
    against taxes has not been made since the excess profits tax for 1943 has never
    been paid.

    The contentions of the taxpayer seek to create confusion about what is


    essentially a simple situation. We find no merit in them and uphold the result
    reached by the Tax Court. The taxpayer owed the government $3,064,526.96.
    Under 3806 this is to be paid by crediting against it the excess profits tax. In
    order to discharge the obligation the taxpayer must pay the excess profits tax.
    This it has not done. A deficiency therefore exists.

    Affirmed.

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