Source: https://openjurist.org/293/us/289
Timestamp: 2019-04-19 22:36:43+00:00

Document:
OLD MISSION PORTLAND CEMENT CO.
Section 240 of the Revenue Act of 1921 (42 Stat. 260), and section 240, Revenue Acts 1924, and 1926 (26 USCA § 993 and note) extends to affiliated corporate taxpayers the privilege of making a consolidated tax return, subject to such restrictions as may be imposed by treasury regulations. The purpose of the section was to provide a method of computing the tax upon the true net income of what is in practical effect a single business enterprise, with substantially common ownership, as though it were that of a single taxpayer, despite the fact that it is carried on by separate corporations whose tax would otherwise be independently computed. See Burnet v. Aluminum Goods Manufacturing Co., 287 U.S. 544, 547, 53 S.Ct. 227, 77 L.Ed. 484; Handy & Harman v. Burnet, 284 U.S. 136, 140, 52 S.Ct. 51, 76 L.Ed. 207; Atlantic City Electric Co. v. Commissioner, 288 U.S. 152, 154, 53 S.Ct. 383, 77 L.Ed. 667; Woolford Realty Co., Inc., v. Rose, 286 U.S. 319, 52 S.Ct. 568, 76 L.Ed. 1128; Appeal of Gould Coupler Co., 5 B.T.A. 499, 514—516; cf., Treasury Regulations 62, Art. 636, under the 1921 act; T.R. 65, Art. 636, under the 1924 act; T.R. 69, Art. 635, under the 1926 act.

References: § 993
 v. 
 v. 
 v. 
 v. 
 Art. 636
 Art. 636
 Art. 635