Burnet v. National Industrial Alcohol Co.

The Board of Tax Appeals affirmed the Commissioner’s determination of deficiencies in respondent’s income and profits taxes for fiscal years ending May 31, 1919, and 1920. The taxpayer claimed allowances for obsolescence, Resulting from prohibition legislation, of a part of a build ing. It was denied. 7 B. T. A. 1241. The Court, of Appeals reversed. 38 F. (2d) 718.

The taxpayer, a Louisiana corporation organized in 1911, was engaged in making and selling beer. November 3, 1919, it abandoned that business and commenced the manufacture of near beer which it continued until 1923. For the…