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carryback whether an underpayment or overpayment was involved.3
In one respect, the prior provision dealing with an overpayment
and its application to deficiencies by the Supreme Court in
Manning v. Seeley Tube & Box Co., supra, was changed in that the
commencement of the running of interest on an overpayment was
moved to the close of the taxable year of the loss. See infra p.
21.
In 1955, in United States v. Koppers Co., supra, the Supreme
Court held that relief in the form of a reduction in excess
profits tax did not release the taxpayer from the obligation to
pay interest on the original deficiency liability until the time
the reduction in tax occurred. Although the Code contained no
specific provision dealing with interest with respect to
deficiencies abated by the excess profits tax adjustment, the
Supreme Court, as in Manning v. Seeley Tube & Box Co., supra,
relied on the general deficiency interest provision (now section
6601(a)) and a provision prohibiting interest for the similar
period on overpayments created by such adjustment (now section
6611(f)).
When Congress enacted section 904(c) in the Technical
Amendments Act of 1958, Pub. L. 85-866, sec. 42(a), 72 Stat.
3 The 1954 Code provision did not include unused excess profits
tax carrybacks presumably because the excess profits tax had
expired on Jan. 1, 1954.
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