Rogers, Brown & Crocker Bros., Inc. v. Commissioner

1. Petitioner, organized in 1925 and doing a jobbing business in a large group of unrelated commodities, took inventories for 1927, 1928, and 1929 at cost. As to inventory practice in 1925 and 1926 the record is silent. The 1928 return stated that inventories were valued at the lower of cost or market, while the 1929 return stated that inventories were valued at cost. Held, that the statement in the 1928 return, which is contrary to fact, was not the exercise of an election of basis for valuing inventories that is binding as to the taxable year 1929; and that petitioner, having consistently…