Court Opinion

ID: 9442387
Source: CourtListenerOpinion
Date Created: 2023-08-03 18:45:50.012656+00
Date Added: 2024-06-11T17:29:05.095268
License: Public Domain

DENMAN, Chief Judge,
concurring in the result and in part of the opinion:
I concur save as to the holding that the Commissioner’s power of apportionment, described in note 19 of the opinion, to reduce the tax if it is “larger * * * than in equity and good conscience” the taxpayer should pay, makes valid the provision of Section 5A(2) (a) that ‘Income received or derived from sales wherever made of goods, wares and merchandise manufactured or originating in the Territory shall be considered to be a part of gross receipts from sources within the Territory.”
The appellant’s complaint does not claim any amount of its income is of the kind described in the last quoted section, and it is not proved that there is such income. The constitutional question of the power of the territory to tax extraterritorial income should be decided only when that issue is before the court. Ashwander v. Tennessee Valley Authority, 297 U.S. 288, 346, 56 S.Ct. 466, 80 L.Ed. 688.