Appeal from judgment of Court of Common Pleas of Dauphin County, No. 307 Commonwealth Docket, 1960, in case of Commonwealth of Pennsylvania v. R. S. Noonan, Inc.
W. William Anderson, with him Markowitz, Kagen & Griffith, for appellant.
George W. Keitel, Deputy Attorney General, with him Walter E. Alessandroni, Attorney General, for Commonwealth, appellee.
Bell, C. J., Musmanno, Jones, Cohen, Eagen, O'Brien and Roberts, JJ. Opinion by Mr. Justice Cohen.
This is an appeal by R. S. Noonan, Inc. (Noonan) with regard to its Corporate Net Income Tax for the year ended September 30, 1957. Noonan is a Pennsylvania corporation engaged in a general building and construction business; it carries on this business in a number of states besides Pennsylvania.
For its fiscal year ended September 30, 1957, Noonan submitted its Corporate Net Income Tax Report and showed a tax of $2,058.62. This tax was computed by applying an allocating percentage of 76.9180% to allocable income of $42,097.16, by adding to the result of $32,380.29 thus obtained gain from the sale of assets situated in Pennsylvania amounting to $1,930.10, and by applying to this sum of $34,310.39 the applicable 6% tax rate.
In determining its allocating percentage of 76.9180%, Noonan reported the following three fractions:
Tangible property $3,971,265.44 / 4,844,422.98 = 81.976%
Wages and Salaries 622,620.70 / 845,052.90 = 73.6783%
Gross Receipts 3,630,715.76 / 4,834,525.02 ...