Harriton v. Lucas

MARTIN, Chief Justice.

This appeal is taken from a redetermination of a deficiency of $4,906.46 in appellant’s income tax for the year 1920.

It appears that the appellant resided in Buffalo, N. Y., and was engaged in the wholesale metal and rubber business. When appellant made his income tax returns for 1917, 1918, and 1919, he made use of his inventories in determining the income from his business and his taxable net income. In 1920, these returns were examined by a revenue agent, who discarded appellant’s inventories, and computed his net income for these years without the use of inventories.…