Mahoney Motor Co. v. Commissioner of Internal Revenue

JOHNSEN, Circuit Judge.

Review is sought of a decision of the Tax Court, 15 T.C. 118, which upheld assessments of deficiencies made by the Commissioner of Internal Revenue in the taxpayer’s excess profits taxes for the calendar years 1944 and 1945, in the amounts of $8,377.85 and $11,319.76 respectively.

The deficiencies arose out of the Commissioner’s disallowance of the taxpayer’s use for credit purposes, in computing the amount of its excess profits taxes, of some bank borrowings aggregating $400,-000, which the Commissioner refused to recognize as constituting “borrowed invested capital”…