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the generally accepted rule concerning the number of
returns which may be filed.
* * * * * * *
Without prescribing an absolute and rigid rule
that whenever the Commissioner files a return for a
foreign corporation the taxpayer is completely and
automatically denied the benefit of deductions or
credits, we yet hold that the facts of the instant case
justify a disallowance of deductions which petitioner
might otherwise have been entitled to claim, had it
filed a timely return in compliance with the statutory
requirement. [Blenheim Co. v. Commissioner, 125 F.2d
906, 910 (4th Cir. 1942), affg. 42 B.T.A. 1248 (1942).]
In Georday Enterprises v. Commissioner, 126 F.2d 384 (4th
Cir. 1942), affg. a Memorandum Opinion of the Board of Tax
Appeals dated Sept. 30, 1940, a companion case to Blenheim Co. v.
Commissioner, supra, the Board denied deductions under section
233 of the Revenue Acts of 1928 and 1932. The Court of Appeals
for the Fourth Circuit affirmed on the basis of Blenheim noting
that the case for the disallowance was even stronger because the
taxpayer did not attempt to file a return until after a petition
had been filed with the Board.
One other case deserves some discussion. In Ardbern Co. v.
Commissioner, 41 B.T.A. 910 (1940), modified and remanded 120
F.2d 424 (4th Cir. 1941), the taxpayer, a foreign corporation,
proffered income tax returns to a revenue agent prior to the date
the Commissioner prepared returns and issued a notice of
deficiency. The revenue agent refused to accept the returns
because they were required to be filed with the Collector of
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