Commissioner of Internal Revenue v. Guminski

198 F.2d 265, 42 A.F.T.R. (P-H) 367, 1952 U.S. App. LEXIS 4129

• Court: Court of Appeals for the Fifth Circuit
• Decided: July 24, 1952
• Docket: 13903
• Status: Published

Opinions

RUSSELL, Circuit Judge.

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.

The Commissioner, by this appeal, assigned error upon the decision of the Tax Court, which held that the taxpayers were entitled to deduct the entire actual cost. This has been the uniform ruling of the Tax Court in similar cases and, so far as we are aware, of such District Courts as have considered the question. Decisions to the same effect have recently been announced by two Courts of Appeals. Commissioner of Internal Revenue v. Weis-man, 1 Cir., 197 F.2d 221; Hofferbert v. Anderson Oldsmobile Company, 4 Cir., 197 F.2d 504. These two decisions lessen our labor and shorten our opinion, for we generally approve the reasoning and result pronounced in them. Upon their authority, the decision of the Tax Court is

Affirmed.