May, Stern & Co. v. Commissioner of Internal Revenue

LIASTIE, Circuit Judge.

This is a petition to review a decision of the Tax Court 1 sustaining a determination by the Commissioner of Internal Revenue of a deficiency in the petitioner’s excess profits tax for its taxable year ending January 31, 1941. The 31-day difference between the end of the calendar year and petitioner’s taxable year is of no consequence in this case. For convenience, therefore, the taxable year in question will be designated as 1940 throughout this opinion.

Petitioner, May, Stern and Company, is a corporation engaged in the home furnishings business. It makes large numbers…