Commissioner of Internal Revenue v. Barclay Jewelry, Inc.

ALDRICH, Chief Judge.

This petition by the Commissioner to review a decision of the Tax Court involves a carryover loss deduction taken against the 1960 income of a corporate taxpayer. In 1958 all of the stock of two corporations, Barclay Company and respondent taxpayer Barclay Jewelry, Inc., was owned by one Rice. Barclay Company was a manufacturer of costume jewelry. Taxpayer was its principal customer. Taxpayer, as a wholesaler, sold through manufacturers’ representatives on a commission basis, and neither owned nor leased any real or personal property, other than its stock in trade, and…