Consolidated Manufacturing, Inc., M. P. Long Living Trust, Merl Philip Long, Trustee, Tax Matters Person - Page 55

                                        -55-                                          
          Chevron, U.S.A., Inc. v. Natural Resources Defense Council, Inc.,           
          467 U.S. 837, 844 (1984).                                                   
               Petitioner also contends that section 472 and its                      
          predecessor provisions in the Internal Revenue laws have been               
          interpreted broadly and that the Court should interpret that                
          section broadly in this case and find that Consolidated's LIFO              
          method does not contravene it or the regulations thereunder.  In            
          support of that contention, petitioner cites several cases,                 
          including Hutzler Bros. Co. v. Commissioner, 8 T.C. 14, 29                  
          (1947).  We find all of those cases to be distinguishable and               
          petitioner's reliance on them to be misplaced.  In the interest             
          of brevity, we shall discuss only the Hutzler Bros. Co. case.               
               Because of the number and diversity of the goods of the                
          taxpayer involved in Hutzler Bros. Co. v. Commissioner, supra,              
          the taxpayer, a department store retailer, devised a LIFO                   
          inventory method that reduced the goods to their lowest common              
          denominator, viz, a dollar figure.  That method, which is now               
          known as the dollar-value LIFO inventory method, was not                    
          expressly permitted by regulation for the year before the Court             
          in the Hutzler Bros. Co. case.  Hutzler Bros. Co. v.                        
          Commissioner, supra at 24.  The only method for that year that              
          was permitted by the regulations under section 22(d) of the 1939            
          Code as amended, a predecessor of section 472, was a method that            
          required the identification of specific goods in a taxpayer’s               
          inventory, a method known as the specific goods LIFO inventory              




Page:  Previous  45  46  47  48  49  50  51  52  53  54  55  56  57  58  59  60  61  62  63  64  Next

Last modified: May 25, 2011