Bemis v. United States

This is a suit for the recovery.of income and excess-profits taxes claimed to have been illegally exacted. The defendant counterclaims for a sum in excess of the amount assessed and collected.

The principles applicable to this case have been passed upon in Edwards v. Douglas; 269 U. S. 204; Mason v. Routzahn, decided by the Supreme Court on November 21, 1927, 275 U. S. 175; and in the Horst cases, decided to-day by this court. Ante, pp. 433, 449.

The court said in the Mason case :

“ The Government admits that no profits were earned in 1917 prior to the payment of the dividends here in question,”…