Heiner, Collector of Internal Revenue, v. Diamond Alkali Co.

These cases present the question whether, where the' Commissioner of Internal Revenue has granted special assessments of profits taxes pursuant to § 328 of the Revenue Act of 1918 (40 Stat. 1093), a court, in an action for a refund, may recalculate the taxpayer’s net income .and recompute the tax by applying to the corrected net income the rate per cent, used by the Commissioner in his computation of the tax.

The Alkali Company filed returns for income and profits taxes for 1918 and 1919 and paid the tax shown to be due. The Commissioner proposed certain changes in income and capital as…