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such carryback, nor was there any comment in the legislative
history adverting to such a situation.
The foregoing action by Congress was the subject of
litigation culminating in Manning v. Seeley Tube & Box Co.,
supra, involving the propriety of charging interest on a
deficiency which was later reduced by a net operating loss
carryback. The Supreme Court held that the taxpayer was liable
for the interest, reasoning that the net operating loss carryback
provision did not alter the taxpayer's duty to pay the full tax
when due. The Supreme Court found support for its conclusion in
section 3771(e) of the 1939 Code (the predecessor of section
6611(f) of the 1954 Code) which, as pointed out above,
specifically prohibited the taxpayer from receiving interest on
"any" overpayment created by the use of a net operating loss
carryback for the period prior to filing a claim for refund of
such overpayment.
The next step in the unfolding history came with the
enactment of section 6601(d) of the 1954 Code, ch. 736, 68A Stat.
817, which codified the holding of Manning v. Seeley Tube & Box
Co., 338 U.S. 561 (1950). At the same time, Congress enacted
section 6611(f) (now section 6611(f)(1)), which contained the
provisions prohibiting interest in respect of an overpayment.
68A Stat. 819. Thus, symmetry was provided in respect of the
obligation for interest resulting from the use of a net operating
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