Monarch Mills v. United States

*483OPINION

The plaintiff is the successor of the Monarch Cotton Mills. It succeeded to all the assets, and assumed all the liabilities of the latter on January 1, 1918.

The Monarch Cotton Mills regularly kept its books on the basis of a fiscal year beginning October 1 and ending September 30 of the succeeding year; it made its financial statements on this basis, and since the passage of the first income tax Act it had filed its income tax returns to the Federal Government on this basis. However, the Commissioner of Internal Revenue in auditing its returns for the fiscal year October 1, 1916 to…