Jay J. And Rose B. Armes v. Commissioner of Internal Revenue

GODBOLD, Circuit Judge:

Taxpayers1 appeal from a decision of the Tax Court redetermining and assessing deficiencies (and negligence penalties) for income tax for the tax years 1960-62. The Commissioner had ascertained the deficiencies by reconstructing taxpayers’ income through the use of bank deposits and excess cash expenditures, and one pivotal question before the Tax Court was whether the excess reconstructed receipts represented taxable income.

For all three years there is a common question of whether, in concluding taxpayers had failed to disprove the Commissioner’s determination that the…