- 99 -
the consolidated return provisions.36 See H. Rept. 1337, 83d
Cong., 2d Sess. 87 (1954). That proposal was rejected by the
Senate, S. Rept. 1622, 83d Cong., 2d Sess. 120 (1954), and by the
conference committee, H. Conf. Rept. 2543, 83d Cong., 2d Sess. 73
(1954), not because of any concern about the validity of those
regulations but because it was believed that it would inhibit the
flexibility of the Secretary to supplement and/or modify those
regulations as was deemed necessary. Subsequently, Congress
enacted section 1502 as part of the 1954 Code and continued to
grant in section 1502 specific legislative authority to the
Secretary to promulgate regulations as the Secretary may deem
necessary to deal with the difficult and complicated problems
relating to the administration of the consolidated return provi-
sions.37
36 After the Revenue Act of 1932 (1932 Act), ch. 209, 47 Stat.
169, and prior to the enactment of the 1954 Code, regulatory
provisions substantially similar to art. 17(a)(2) of Regs. 75
appeared subsequently in art. 17(a)(2) of Regs. 78 under the 1932
Act; art. 17(a)(2) of Regs. 89 under the Revenue Act of 1934, ch.
277, 48 Stat. 680; art. 17(a)(2) of Regs. 97 under the Revenue
Act of 1936, ch. 690, 49 Stat. 1648; art. 17(a)(2) of Regs. 102
under the Revenue Act of 1938, ch. 289, 52 Stat. 447; sec.
23.17(a)(2) of Regs. 104 under the Code of 1939 (1939 Code); sec.
33.17(a)(2) of Regs. 110 under the Second Revenue Act of 1940,
ch. 757, 54 Stat. 974, relating to the excess profits tax; and
sec. 24.17(a)(2) of Regs. 129 under the 1939 Code in respect of
years after 1949 and before 1954.
37 After the enactment of the 1954 Code, regulations substan-
tially similar to art. 17(a)(2) of Regs. 75 and its successor
regulatory provisions were promulgated as sec. 1.1502-17(a)(2),
Income Tax Regs., under the 1954 Code in respect of years before
1966; sec. 1.1502-77(c)(2), Income Tax Regs., under the 1954 Code
in respect of years after 1965; and sec. 1.1502-77(c)(2), Income
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