- 68 -
the Court to disavow Scott Paper Co. v. Commissioner, supra, and
its progeny, and instead to follow the reasoning of A.C. Monk &
Co. v. United States, 686 F.2d 1058, 1065-1066 (4th Cir. 1982)
(no justification for allocating portions of a single electrical
system; components of electrical system are structural components
if they can be reasonably adapted to general uses), or of
Illinois Cereal Mills, Inc. v. Commissioner, 789 F.2d at 1244
(electrical distribution system was "other tangible property"
under section 48(a)(1)(B)).46
46 Absent a stipulation to the contrary, the instant case is
appealable to the Court of Appeals for the Sixth Circuit and
therefore is not controlled by the decisions of the Courts of
Appeals for the Fourth Circuit (A.C. Monk & Co. v. United States,
686 F.2d 1058 (4th Cir. 1982)) or Seventh Circuit (Illinois
Cereal Mills, Inc. v. Commissioner, 789 F.2d 1234 (7th Cir.
1986), affg. T.C. Memo. 1983-469). See Golsen v. Commissioner,
54 T.C. 742 (1970), affd. 445 F.2d 985 (10th Cir. 1971). The
Court of Appeals for the Sixth Circuit has not decided the issue;
accordingly, we decide the instant case as we think proper.
Lardas v. Commissioner, 99 T.C. 490, 498 (1992).
We note, however, that in Morrison, Inc. v. Commissioner,
891 F.2d 857, 863 n.* (11th Cir. 1990), the Court of Appeals for
the Eleventh Circuit stated as follows:
*We note that only Scott Paper is directly on point. In
Scott Paper, the Tax Court analyzed a primary electrical
system to determine whether it partially qualified as
tangible personal property under section 48(a)(1)(A). The
Illinois Cereal and the Monk courts, however, discussed
whether portions of primary electrical systems constituted
other tangible personal property under section 48(a)(1)(B).
Although the Illinois Cereal court stated at the end of its
opinion that the taxpayer's primary electrical system did
not constitute tangible personal property, the court did not
squarely face the issue. See Illinois Cereal, 789 F.2d at
1239 ("[Taxpayer] does not contend that its electrical
distribution system is 'tangible personal property' under
(continued...)
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