Knapp-Monarch Co. v. Commissioner of Internal Revenue

MOORE, District Judge.

This is a petition to review a decision of the Tax Court which upheld a deficiency income tax assessment against petitioning corporation. There is no question but that the assessment is correct in amount provided it was within the jurisdiction of the Commissioner of Internal Revenue to make any such assessment; the only question for our consideration is whether or not the Commissioner’s right to make an assessment had been foreclosed by his previous ruling that no tax was due by reason of the transaction under consideration.

The facts giving rise to the controversy are as…