C-O-Two Fire Equipment Company v. Commissioner of Internal Revenue

GOODRICH, Circuit Judge.

This is a tax case in which the question involved depends upon when part of the taxpayer’s inventory became obsolete. If this happened in 1946 the taxpayer may carry back its loss for that year to reduce its 1944 tax liability and that is what it wants to do. The tax court found that the material in question became obsolete in 1947, 22 T.C. 124. Whether that finding is correct is the sole point in the case.

We said in Mine Hill & Schuylkill Haven R. Co. v. Smith, 3 Cir., 1950, 184 F.2d 422, certiorari denied 1951, 340 U.S. 932, 71 S.Ct. 496, 95 L.Ed. 673, and reiterate…