Commissioner of Internal Revenue v. Guminski, 13903.
Decision Date | 24 July 1952 |
Docket Number | No. 13903.,13903. |
Parties | COMMISSIONER OF INTERNAL REVENUE v. GUMINSKI et al. |
Court | U.S. Court of Appeals — Fifth Circuit |
Melva M. Graney, Hilbert P. Zarky, Lee A. Jackson, Sp. Assts. to Atty. Gen., Ellis N. Slack, Acting Asst. Atty. Gen., Mason B. Leming, Acting Chief Counsel, John M. Morawski, Special Atty., Bureau Int. Rev., Washington, D. C., for petitioner.
William P. Fonville, Dallas, Tex., for respondents.
Before HUTCHESON, Chief Judge, and RUSSELL and STRUM, Circuit Judges.
The basic question presented by this appeal is whether the taxpayers, in computing their taxable income for the year 1945, were entitled to deduct, as costs of goods sold, the portion of the cost of meat purchased which was in excess of applicable price ceilings established under the Emergency Price Control Act of 1942, 50 U.S.C.A.Appendix, § 901 et seq.
With deference to the able judges, in this circuit and elsewhere, who have taken the opposite view, I am opposed to an interpretation of the tax laws which will enable a taxpayer to gain a tax advantage by violating the price stabilization laws, thus placing himself in a better position than had he obeyed the law.
The taxing authorities should not be compelled to recognize a merchandise "cost," the payment of which is expressly proscribed and denounced as a crime by federal law. "Cost," as used in Treasury Regulation 111, Sec. 29.22(a)-5, means "lawful cost."
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