Woodsam Associates, Inc. v. Commissioner of Internal Revenue

CHASE, Circuit Judge.

The petitioner paid its income and declared value excess profits taxes for 1943 as computed upon returns it filed which included as part of its gross income $146,058.10 as gain realized upon the mortgage foreclosure sale in that year of improved real estate which it owned and which was bid in by the mortgagee for a nominal sum. It filed a timely claim for refund on the ground that its adjusted basis for the property had been understated and its taxable gain, therefore, was less than that reported. The refund claim was denied and a deficiency in both its income taxes and…