Appeal from judgment of Commonwealth Court of Pennsylvania, No. 248 C.D. 1970, in case of Commonwealth of Pennsylvania v. Pincus Brothers, Inc.
Alan J. Davis, with him Wolf, Block, Schorr & SolisCohen, for appellant.
Eugene J. Anastasio, Deputy Attorney General, for Commonwealth, appellee.
Jones, C. J., Eagen, O'Brien, Roberts, Pomeroy, Nix and Manderino, JJ. Opinion by Mr. Justice Eagen.
Pincus Brothers, Inc. [Pincus] is a Pennsylvania Corporation engaged in the manufacturing and sale of tailored men's suits. Its manufacturing plant and principal office are in Philadelphia. In its Corporate Net Income Tax Report for the year 1967, Pincus computed the tax due the Commonwealth of Pennsylvania as $12,804.00. Subsequently, the Commonwealth's Board of Finance and Revenue [Board] determined sur a petition for review, that Pincus owed a total tax of $19,644.11.
Pincus filed an appeal in the Commonwealth Court which ruled the Board correctly determined the tax due and entered judgment for the amount of tax [$19,644.11], plus interest and costs. Pincus appeals:
The facts disclosed by the record are these:
While Pincus' manufacturing plant and principal office are in Philadelphia, a showroom and sales office is maintained in New York City.*fn1 David Pincus, Secretary-Treasurer and Sales Manager of Pincus, is in charge of this New York City showroom-office and spends four and one-half days there each week. However, he resides in Philadelphia and also has an office there.
Eight full-time employees work in the New York City showroom-office. The wages paid these employees are reported to the State of New York for unemployment compensation. Pincus also employs fifteen individual salesmen who are assigned territories in Illinois, California, Rhode Island, North Carolina and Texas. These salesmen work under the supervision of David Pincus and contact him about selling problems. Sales meetings are held both in Philadelphia and New York City. The commissions due the salesmen plus their expense vouchers are paid from the Philadelphia office. Their earnings are reported to the Commonwealth of Pennsylvania for unemployment compensation purposes. All of the expenses incident to the maintenance of the New York City showroom-office are paid from the Philadelphia office.
During January, February and March, buyers from across the country visit Pincus' New York facility to examine displays and place orders for delivery during the "spring selling season." Similar visits are made in ...