Keller-Dorian Corp. v. Commissioner of Internal Revenue

SWAN, Circuit Judge.

For many years the petitioner has been engaged in the importation and sale of merchandise. It has kept its books and prepared its tax returns on the accrual basis. Its fiscal year ends January 31st and the taxable years involved in this pro*1007ceeding are those ending on January 31, 1941 and 1942. In each of these years the taxpayer accrued and paid additional customs duties on importations of merchandise in earlier years. Deduction of these payments was claimed under § 23 of the Internal Revenue Code, 26 U.S.C.A. Int.Rev. Code, § 23; disallowance of them produced the…