Maryland Jockey Club of Baltimore City v. United States

THOMSEN, Chief Judge.

This is an action for the recovery of deficiencies in excess profits tax, assessed against and paid by taxpayer with respect to its fiscal years ending November 30, 1950, and November 30, 1953.1

The question presented is whether certain payments which taxpayer received from the “Racing Fund” during the fiscal years in question were “abnormal income”, as that term is defined in sec. 456, I.R.C.1939, which was added to the Code by sec. 101 of the Excess Profits Tax Act of 1950.2 That section grants relief in certain cases of “abnormal in*610come”, as defined in sec. 456(a), by…