City Stores Co. v. United States

VAN DUSEN, District Judge.

In this ease, plaintiff seeks a refund of taxes paid for the year ended January 31, 1944. In that year, Lit Brothers (a department store now owned by plaintiff) sold1 certain instalment accounts receivable from retail customers which had arisen in the regular course of business. The full face value of the accounts had been included in gross sales. This sale was consummated as a step in Lit Brothers’ change-over from the accrual to the instalment method of accounting2 and was the only time Lit Brothers ever made such a sale (Document 7, par. 18).3 The accounts were…