Bowers v. Max Kaufmann & Co.

MANTON, Circuit Judge.

For the taxable year 1918, the defendant in error paid $15,176.15, with interest as additional excess profits tax, under protest. It sued to recover this sum and was successful below. The defendant in error and its affiliated company, Hallukk Texstyle Corporation, both New York corporations, filed a consolidated return for that year. The basis of the suit for the return of the tax paid is the erroneous deduction by the Internal Revenue Commissioner of sums of money from its invested capital. Such reduction from invested capital caused an increase in the excess profits…