- 22 - intention that they should be otherwise construed.12 See supra note 8. Inventory is, simply stated, property that is held for sale. Grant Oil Tool Co. v. United States, 108 Ct. Cl. 620, 381 F.2d 389, 397 (1967). We have found that the emulsified asphalt is not merchandise held for sale by petitioner in the operation of petitioner's service business, and that petitioner does not keep any raw materials or finished goods on hand. Previously, the Court of Appeals for the Second Circuit considered the fact that the taxpayer had no stock or merchandise on hand and no warehouse or storeroom for merchandise, and that goods were delivered directly from the manufacturer to the customer, to be conclusive in finding that the taxpayer did not maintain inventories. See Simon v. Commissioner, 176 F.2d 230, 232 (2d Cir. 1949) (buyer 12 "Inventory" is defined in The Random House College Dictionary (1982) as: 1. a detailed, often descriptive, list of articles, giving the code number, quantity, and value of each; catalog. * * * 3. a complete listing of merchandise or stock on hand, raw materials, etc., made each year by a business concern. 4. the objects or items represented on such a list, as a merchant's stock of goods. 5. their aggregate value. Similarly, "inventory" is defined in Webster's Second New International Dictionary (1957) as: 1. an account, catalog, or schedule, made by an executor or administrator, of all the goods and chattels, and sometimes of the real estate, of a deceased person; a list of the property of a person or estate; hence an itemized list of goods or valuables, with their estimated worth; specif., the annual account of stock taken in any business; * * * 2. Inventoriable goods, hence stock of such; * * * .Page: Previous 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 Next
Last modified: May 25, 2011