Trojan Powder Co. v. United States

LITTLETON, Judge.

Section 203 of the Revenue Act of 1918 (40 Stat. 1060) provides for the use of inventories whenever in the opinion of the Commissioner of Internal Revenue they are necessary in order correctly to determine the income of the taxpayer and also authorizes the Commissioner to pre-' scribe the basis upon which the inventories should be taken. Accordingly, the Commissioner on April 17, 1919, published Art. 1582, Regs. 45, which provided that inventories must be valued at (a) cost, or (b) cost or market, whichever is lower. This regulation further provided that “a taxpayer may,…