John Breuner Co. v. Commissioner of Internal Revenue

Petitioner seeks reversal of a part of a decision of the Tax Court. The part sought to be reversed holds that there was a deficiency of $44,166.54 in respect of petitioner’s excess profits tax for tire year ended January 31, 1943. Petitioner contends that, instead of a deficiency of $44,-166.54, there was an overpayment of $91,-637.06. The question presented is whether petitioner’s excess profits tax for the year ended January 31, 1943, was correctly computed by the Tax Court.

In computing that tax, it was necessary to compute petitioner’s adjusted excess profits net income for the year ended January 31, 1943. In computing that income, it was necessary to compute petitioner’s excess profits credit for each of the years ended January 31, 1941, January 31, 1942, and January 31, 1943. In computing that credit, it was necessary to compute petitioner’s equity invested capital for each of the years ended January 31, 1941, January 31, 1942, and January 31, 1943. In computing that capital, >it was necessary to compute petitioner’s accumulated earnings and profits as of the beginning of each of the years ended January 31, 1941, January 31, 1942, and January 31, 1943 —years which began…