Union Pac. Ry. Co. v. Bowers

L. HAND, Circuit Judge.

The complaints alleged that the plaintiffs in March, 1924, made income tax returns for the year 1923, in which they charged themselves with 2 per cent, upon interest paid by them to certain holders of their bonds. They had promised to pay this interest without deduction for any tax which they might be required or permitted to pay or retain under any law of the United States, and they agree that sections 221 and 237 of the Revenue Act of 1921 (42 Stat. 248, 258) required them to return and pay the amount which they included. Section 1200 (a) of the Revenue Act of 1924…