Callanan Road Improvement Company v. United States

FEINBERG, Circuit Judge;

This case involves the interaction of various provisions of the Internal Revenue Codes of 1939 and 1954 which govern loss carryover deductions. In 1958, taxpayer Callanan Road Improvement Company sued in the United States District Court for the Northern District of New York for a refund of income taxes paid in the years 1951 through 1954. Over time, every issue in suit was settled except one: whether taxpayer could properly apply $158,000 of a loss carryover deduction to the taxable year 1954. Chief Judge James T. Foley held that it could not and granted summary…