Denman v. Brumback

SIMONS, Circuit Judge.

The appellee obtained judgment below for recovery of income taxes .for 1922 collected under a deficiency assessment by appellant’s decedent, collector of internal revenue. The assessment resulted from the disallowance of a deduction taken by the taxpayer for loss incurred on land in the Bitter Root Valley, Mont., purchased in 1912.

The land, in which the taxpayer had a half interest, was arid and undeveloped, was purchased for resale, and was to be made available for fruit raising by irrigation furnished by the Bitter Root Valley Irrigation Company, a private corporation.…