Scofield v. First Nat. Bank in Houston

HUTCHESON, Circuit Judge.

The suit was brought by First National Bank of Houston and First National Bank in Houston, as its successor, for a refund of $21,136.49, paid by First National Bank of Houston as income taxes for the calendar year 1937. The successorship is without bearing on the issues in the case, and reference hereafter to plaintiffs-appel-lees, as taxpayers or otherwise, will be in the singular.

The claim was that plaintiff sustained a loss in that year of $150,000, as the result of a contribution it made in 1931 to a bank liquidation indemnity fund,1 and that in disallowing it as…