Southern California Box Co. v. United States

GREEN, Judge.

Plaintiff brings this suit to recover an alleged overpayment upon its income and profits taxes for the year 1920. The case turns on the question of whether the plaintiff, in returning its income for that year, was entitled to make a deduction of $27,536.70 on account of a loss alleged to have been sustained that year through transactions with one A. D. Hill.

The evidence shows that about October 16, 1918, plaintiff entered into a contract with Hill whereby plaintiff was to advance -money to Hill from time to time as it became necessary to enable Hill to construct and operate a…