Lerner Stores Corp. v. Commissioner

SWAN, Circuit Judge.

The tax in dispute is the petitioner’s excess profits tax for the fiscal year 1937. Sections 105 and 106 of the Revenue Act of 1935, 49 Stat. 1017, as amended by Sections 401 and 402 of the Revenue Act of 1936, 49 Stat. 1733, 26 U.S.C.A. Int.Rev.Acts, pages 798, 800, impose interrelated taxes on domestic corporations, namely a capital stock tax and an excess profits tax, calculated on the basis of the value of the capital stock as declared in the corporation’s capital stock tax return for the first year in which the tax is imposed. The main question presented by the case…