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PUBLIC LAW 183—OCT. 20, 1951
[65 STAT.
"Part IV—Excess Profits Credit Based on Income in Connection With Certain Taxable Acquisitions Occurring Prior to December 1, 1950.
64 Stat. 1191. 26 U.S.C. §461(a).
"SEC. 474. EXCESS PROFITS CREDIT BASED ON INCOME—CERTAIN TAXABLE ACQUISITIONS. " (a) DEFTNITIONS.—For the purpose of this part— "(1) PURCHASING CORPORATION.—The term 'purchasing corporation' means a corporation which, before December 1, 1950, acquired— " (A) I n a transaction other than a transaction described in section 461(a), substantially all of the properties (other than cash) of another corporation, of a partnership, or of a business owned by a sole proprietorship; or " (B) Properties of another corporation or of a partnership if (i) such properties constituted, immediately prior to the acquisition, substantially all of the properties (other than cash) of one or more separate businesses of such other corporation or such partnership, (ii) such other corporation or such partnership was engaged in one or more separate businesses other than those described in clause (i), and (iii) substantially all of the properties (other than cash) of such other corporation or such partnership were acquired, in furtherance of a single plan of complete liquidation for such other corporation or such partnership, by the purchasing corporation, and by one or more other persons, in transactions other than transactions described in section 461(a). "(2) SEIXING CORPORATION.—The term 'selling corporation' means a corporation, a partnership, or a business owned by a sole proprietorship, as the case may be, properties of which were acquired by a purchasing corporation in a transaction described in paragraph (1). "(3) PART IV TRANSACTION.—The term 'part IV transaction' means a transaction described in paragraph (1). "(b)
AVERAGE BASE PERIOD N E T INCOME OF PURCHASING COR-
PORATION.—The average base period net income of a purchasing corporation, if computed with reference to this part, shall be determined under section 435(d). The average base period net income under 26 u^s c*§'435 (d) section 435(d) of a purchasing corporation shall be determined by Arue, p. 544. ' computing its excess profits net income either with or without reference to this part, whichever produces the lesser tax under this subchapter for the taxable year for which the tax is being computed. If computed with reference to this part, the excess profits net income of a purchasing corporation for any month of its base period shall be its excess profits net income (or deficit therein), computed without reference to this part, and increased or decreased, as the case may be, by the addition or reduction resulting from including— "(1) I n the case of a transaction described in subsection (a) (1)(A), the excess profits net income (or deficit therein) for such month of the selling corporation, or "(2) I n the case of a transaction described in subsection (a) (1)(B), the excess profits net income (or deficit therein) for such month of the selling corporation properly attributable to the business or businesses acquired by the purchasing corporation and properly allocable to such purchasing corporation. The excess profits net income of a purchasing corporation for any month, recomputed as provided in the previous sentence, shall not be less than zero.
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