Pelham Hall Co. v. Hassett

MAGRUDER, Circuit Judge.

We are called upon in this case to consider to what extent a decision of the Board of Tax Appeals which has become final has the effect of res judicata in litigation involving a subsequent tax year. In its income tax return for the fiscal year ending August 31, 1936, the taxpayer claimed for depreciation on a certain building a deduction calculated at 2% on a base of $806,000. The Commissioner, though accepting the 2% rate, reduced the base to $362,700, and accordingly assessed a deficiency of $1216.29. This additional tax, with interest in the sum of $120.15, was paid…