First Nat. Bank of Sharon, Pa. v. Heiner

BUFFINGTON, Circuit Judge.

The underlying question in this income tax case is whether the item here involved was, under the provisions of the Revenue Act of 1928 (26 USCA § 2001 et seq.), a loss. The court below (2 F. Supp. 960, 961) held it was a loss which was not deductible because not “sustained during the taxable year” of 1928. Thereupon the taxpayer took this appeal.

The item in question came into being under the facts stated in the opinion below, viz.: “During the year's 1922 to 1928, inclusive, an employee of the plaintiff bank embezzled $95,360 of the funds of the bank. On September…