District of Columbia v. Lambert King and Harry Bartz, T/a Bartz & King, a Partnership

BURGER, Circuit Judge.

The District of Columbia asserted a deficiency assessment against appellees, retail jewelers, for the years 1953, 1954 and 1955 for failure to include in personal property tax returns 1 about three-quarters of the merchandise in appellees’ store. The Taxpayers included in their return one-quarter of their stock in trade which they owned absolutely, but did not include the other three-quarters made up of merchandise sent on a “memorandum” arrangement 2 which enabled Taxpayers to display the merchandise, hold it out for sale, sell it and transfer title to a purchaser.…