47 N.E.2d 150 (Ind. 1943), 27767, Department of Treasury of Ind. v. International Harvester Co.

Docket Nº:27767.
Citation:47 N.E.2d 150, 221 Ind. 416
Party Name:DEPARTMENT OF TREASURY OF INDIANA et al. v. INTERNATIONAL HARVESTER CO. et al.
Case Date:March 19, 1943
Court:Supreme Court of Indiana
 
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Page 150

47 N.E.2d 150 (Ind. 1943)

221 Ind. 416

DEPARTMENT OF TREASURY OF INDIANA et al.

v.

INTERNATIONAL HARVESTER CO. et al.

No. 27767.

Supreme Court of Indiana

March 19, 1943

Page 151

George N. Beamer, Atty. Gen., David I. Day, Jr., Deputy Atty. Gen., and Byron B. Emswiller, of Indianapolis, for appellants.

Edward R. Lewis, of Chicago, Ill., and Warrack Wallace, Paul N. Rowe, and Baker, Daniels, Wallace & Seagle, all of Indianapolis, for appellees.

SHAKE, Judge.

The appellees sued to recover gross income taxes paid to the State of Indiana during the years 1935 and 1936. It was stipulated at the trial that judgment for any amount found due should be in favor of the appellee International Harvester Company, and that, for the purposes of the case, the appellees should be considered as one party.

The evidence disclosed, without conflict, that the appellees were corporations organized under the laws of other states but authorized to do business in Indiana. They were engaged in the manufacture of farm implements[221 Ind. 419] and in the sale of their products both at wholesale and retail. Manufacturing establishments were maintained at Richmond and Fort Wayne, and selling branches at Indianapolis, Terre Haute, Fort Wayne, and Evansville in this state. There were also mumerous manufacturing plants and sales branches in adjoining states and elsewhere. Each branch served assigned territory and in several instances parts of Indiana were within the exclusive jurisdiction of branch offices located without the state.

The trial court determined the tax liability of the appellees under four factual situations, designated as Classes A, C, D, and E. The nature of these transactions may be stated as follows:

Class A: Sales by branches located outside Indiana to dealers and users located in Indiana. These sales were made on orders solicited in Indiana by representatives of out-of-state branches, or upon mail orders sent from Indiana to out-of-state branches. The orders were accepted by the outside state branch offices and the purchase money paid to them. Without directions from the purchasers, the goods were shipped to them in Indiana from branches, warehouses, or factories located outside Indiana.

Class C: Sales by branches located outside Indiana to dealers and users residing in Indiana. The orders were solicited in Indiana and the customers took...

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