Associated Telephone and Telegraph Company, and Cross v. United States of America, and Cross

WATERMAN, Circuit Judge.

This case presents two distinct questions of federal income taxation under the Internal Revenue Code of 1954, one involving the treatment of capital losses on a consolidated return, the other involving the foreign tax credit provisions. The taxpayer brought this action in the United States District Court for the Southern District of New York pursuant to 28 U.S.C. § 1346, seeking a refund of a portion of the federal income taxes it had paid for the taxable year 1954. The district court in an opinion reported at 199 F.Supp. 452 (S.D.N.Y.1961) granted summary judgment for…