Fort Pitt Brewing Co. v. Commissioner of Internal Revenue

HASTIE, Circuit Judge.

We are asked to decide whether, in the particular circumstances of this case, Section 41 of the Internal Revenue Code justified the Commissioner of Internal Revenue in making “adjustments” of the Fort Pitt Brewing Company’s gross income for 1942 and 1943, adding to income the amount of the net increase during each taxable year of the taxpayer’s accounting “Reserve for Returnable Containers”.

Section 41 provides that “if the method [of accounting] employed [by a taxpayer] does not clearly reflect the income, the computation shall be made in accordance with such method as…