Stow Mfg. Co., Inc. v. Commissioner of Internal Revenue

L. HAND, Circuit Judge.

This appeal (petition to review) challenges the validity of the assessment of a deficiency in the taxpayer’s excess profits tax for the year 1942. The taxpayer is a corporation which makes “flexible shafting,” and which in 1942 had contracts with the United States Navy to supply it with that article. During the year 1943 it entered into “renegotiation” with the Navy under the Renegotiation Act 1 for the repayment of- a part of what it had received from the Navy under the terms of its contracts. The negotiations ended in a contract between it and the Secretary of the…