We perceive no such weighty reason. Finally, the Tax Court, in Topps of Canada, Ltd. v. Commissioner, 36 T.C. 326 (1961), was previously faced with the identical issue. The plaintiff in that case also contended that "incidental purchases" meant purchases incident to the conduct of its business.
Ordinarily, regulations must be sustained unless they are unreasonable and plainly inconsistent with the revenue statute. Topps of Canada, Ltd. v. Commissioner, 36 T.C. 326 (1961). Petitioner herein contends that the regulation in question is unreasonable and is not supported by the statute.
Accordingly, unless it is “unreasonable and plainly inconsistent with the revenue statutes,” a regulation must be sustained. Commissioner v. South Texas Lumber Co., 333 U.S. 496, 501 (1948); accord, Topps of Canada, Ltd. v. Commissioner, 36 T.C. 326, 336-337 (1961). We think the regulation embodies a reasonable interpretation of section 1348.
And regulations must be upheld unless they are unreasonable and plainly inconsistent with revenue statutes. Commissioner v. South Texas Co., 333 U.S. 496 (1948); Lucas v. American Code Co., 280 U.S. 445 (1930); Topps of Canada, Ltd., 36 T.C. 326 (1961); Service Life Insurance Co. v. United States, 293 F.2d 72 (C.A. 8, 1961). The statutory provision in question, it appears, is susceptible to both of the interpretations urged upon us by the parties.