Commissioner of Internal Revenue v. Flory Milling Co., Inc.

STALEY, Circuit Judge.

The government has appealed from a decision of the Tax Court 1 which held that there was no deficiency in the taxpayer’s (Flory Milling Co., Inc.) excess profits income tax payments for its fiscal year which ended September 30, 1944.

The proper amount of the 1944 excess profits tax depends upon the amount of unused excess profits credit which the taxpayer had in 1946, because this amount can be carried back from 1946 to 1944. In turn, the taxpayer’s 1946 unused excess profits credit is affected by a 1948 net operating loss, which can be carried back to 1946.

Thus, the…