First Federal Savings & Loan Ass'n of Billings v. State Tax Appeal Board

delivered the Opinion of the Court..

This is an appeal by the Montana Department of Revenue-from a judgment of the district court, Lewis and Clark. County, reversing orders of the Montana Department of Revenue and the State Tax Appeal Board.

This matter was tried on an agreed statement of facts.. Plaintiffs are several savings and loan associations located in. Montana. In their 1972 Montana corporation license tax returns, they deducted from their gross incomes the bad debt: reserve authorized by sections 166 and 593, Title 26, United. States Code. At the same time, they filed amended returns,…