Shoong Inv. Co. v. Anglim

ROCHE, District Judge.

This is a suit to recover $77,763.50 of alleged overpayment of income tax and interest thereon for 1937. The question before the Court is whether the plaintiff, which filed its income tax return on a cash basis for seven years prior to 1937, is entitled to deduct taxes accrued but not paid in 1937 in computing its income tax liability for that year. On the trial the facts as to the assessment of the alleged deficiency were stipulated and the testimony of witnesses dealt largely with methods of accounting used.

It appeared from the evidence that prior to 1937 the…