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for the taxable year, regardless of the fact that the
Commissioner can no longer assess any deficiency for the taxable
year. In Lewis v. Reynolds, supra, the taxpayer filed a claim
for refund alleging that certain deductions had been improperly
disallowed by the Commissioner after the period of limitations on
additional assessment had expired. The Commissioner agreed with
the taxpayer that the period of limitations had expired but
denied a refund on the basis that the correct computation of tax
resulted in additional tax. The taxpayer argued that the
Commissioner lacked the authority to redetermine the tax after
the period of limitations had expired. The Supreme Court
disagreed.
While no new assessment can be made, after the bar of
the statute has fallen, the taxpayer, nevertheless, is
not entitled to a refund unless he has overpaid his
tax. * * *
* * * * * * *
An overpayment must appear before refund is authorized.
Although the statute of limitations may have barred the
assessment and collection of any additional sum, it
does not obliterate the right of the United States to
retain payments already received when they do not
exceed the amount which might have been properly
assessed and demanded. [Lewis v. Reynolds, supra at
283.]
The doctrine established in Lewis v. Reynolds, supra, has
been applied by this Court in the determination of an
overpayment. See Connecticut Light & Power Co. v. Commissioner,
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