E. & J. Gallo Winery, a Corporation v. Commissioner of Internal Revenue

This case arises on an amended petition to review a decision of the Tax Court of the United States. It involves a merger of corporations, and raises the question whether the taxpayer, Gallo Winery, (hereafter Gallo) may use the unused excess profits tax credit of Valley Agricultural Company, (hereafter Valley), the merged corporation, as a carry-over under Sec. 710(b) (3) and (c) of the 1939 Internal Revenue Code, 26 U.S.C.A. § 710 (b) (3), (c) for its taxable year ending April 30, 1946.

The case was tried below on a stipulation of facts. A memorandum opinion was filed, the equivalent of findings, and a decision entered on August 31, 1953. Within time the petition for review was filed. The opinion and decision below was not officially reported.

The facts are as follows: Gallo, the taxpayer, was incorporated under the laws of California on May 28, 1942, under the name of Gallo Tank Lines, to engage in the railroad tank car business. On March 9,1944, Gallo amended its articles of incorporation so as to substitute its present name for Gallo Tank Lines and to authorize it to engage in the winery business.

Valley was incorporated under the laws of the State of California on March 6,…