Rushlight Automatic Sprinkler Co. v. United States of America, United States of America v. Rushlight Automatic Sprinkler Co.

BOWEN, District Judge.

The 1953 fiscal year’s income of a joint venture, of which Rushlight Automatic Sprinkler Co. (the defendant below, being both appellant and appellee here, and hereinafter referred to as Rushlight) was a member, was pursuant to § 3806(b) of the Internal Revenue Code of 1939, 26 U.S.C.A. § 3806(b), renegotiated for excessive profits by the Los Angeles Regional Renegotiation Board. In September 1956 the Board determined that the joint venture had received excessive profits of which Rushlight’s individual share was $22,-250. Thereupon the District Director of Internal…