Utility Appliance Corporation, a Corporation v. Commissioner of Internal Revenue

This is a petition for a review of the decision of the Tax Court, and involves a determination of the Federal excess profits tax for the calendar year 1944.

The Commissioner has expressed some doubt as to the jurisdiction of this Court to review the decision of the Tax Court because of the prohibition against appellate review contained in Section 732(c) of the 1939 Internal Revenue Code, 26 U.S.C.A. Excess Profits Taxes, § 732(e). This section provides:

It is true that the issue here arises under Section 722(d) but that section expressly makes such issue dependent upon Section 322, 26 U.S.C.A. § 322 . Furthermore, consideration must be given to the regulations promulgated by the Commissioner pursuant to the provisions of Section 722(d). As stated in May Seed and Nursery Company v. Commissioner of Internal Revenue, 8 Cir., 1957, 242 F.2d 151 , at page 155, the issue in this type of case is not one determined “solely by reason of § 722 of the Code” because the underlying questions are as to “whether Section 710 is controlling of the situation” and “whether the Regulations * * * are * * * valid.” For the foregoing reasons we are not precluded from assuming jurisdiction in this case…