Walter

Income tax; claim for refund; limitation of actions.— Plaintiffs sued to recover income taxes claimed to have been overpaid for the years 1951 and 1952 on royalty income on the ground that by virtue of the Act of June 29, 1956, 70 Stat. 404, plaintiff was given the right to treat the income from royalties as capital gains rather than as ordinary income for income tax purposes. Defendant contended that, assuming the 1956 Act created a new cause of action, the claim for refund was not timely because it was filed more than two years after the effective date of the act, i.e., the date of…