Aluminum Co. of America v. United States

WOOLLEY, Circuit Judge.

Under the law as it stood in 1917, affiliated corporations were required to file consolidated returns for excess-profits taxes and separate returns for income taxes. In consonance with the law, Aluminum Company of America and its twenty-seven affiliated corporations made returns of both kinds for that year. During the year various units of this group of corporations had inter-company transactions of sale and purchase of commodities in which, pursuant to a recognized business policy of the group, profits were allowed and made. They were excluded from the consolidated…