Leo L. Lowy v. Commissioner of Internal Revenue

HAND, Circuit Judge.

This case arises upon a petition to review a deficiency in the petitioner’s income taxes for the year 1944. In his return for that year the petitioner showed a loss of nearly $200,000, which the Commissioner on audit changed to a tax due of over $600,000 which together with a 50% fraud penalty and interest is claimed to create a total tax liability of $1,600,-000. The Commissioner’s figures are not disputed, but the assessment was barred by the Statute of Limitations on May 15, 1948 — three years after the date when the return for 1944 was filed. The Commissioner argues…