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be filed timely within the meaning of section 235 (currently
section 6072(c)). Therefore, the foreign corporation was
entitled to the benefit of deductions even though its returns
were not filed timely. Id. at 716.
In Mills, Spence & Co. v. Commissioner, a Memorandum Opinion
of this Court dated Oct. 5, 1938, the Board of Tax Appeals
followed its decision in Anglo-American Direct Tea Trading Co. v.
Commissioner, supra. On July 19, 1934, the Commissioner sent a
letter to a foreign corporation advising the corporation that its
returns had not been filed for the taxable years 1929 through
1933. In February 1936, after several rounds of correspondence,
attorneys filed the corporation's income tax returns.
Thereafter, the Commissioner disallowed the deductions claimed on
those returns and issued a notice of deficiency. The Board held
the corporation was entitled to the deductions, stating: "It is
unnecessary to assign any reason for such conclusion other than
to say that our decision on this point is clearly controlled by
the holding of the Board in Anglo-American". Mills, Spence & Co.
v. Commissioner, supra.
The Board of Tax Appeals next addressed the issue in Taylor
Sec., Inc. v. Commissioner, 40 B.T.A. 696 (1939). In Taylor Sec.
a foreign corporation filed its returns after the Commissioner
had filed substitute returns and issued a notice of deficiency.
The Board held that the foreign corporation was not entitled to
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