-103-
tax. Georday Enters. v. Commissioner, 126 F.2d 384, 388 (4th
Cir. 1942), affg. a B.T.A. Memorandum Opinion; Blenheim Co. v.
Commissioner, supra at 909-910; Ardbern Co. v. Commissioner, 120
F.2d 424 (4th Cir. 1941), modifying and remanding 41 B.T.A. 910
(1940); Taylor Sec., Inc. v. Commissioner, 40 B.T.A. 696, 703
(1939).
In Blenheim Co. v. Commissioner, supra at 908, the Court of
Appeals did state that section 233 of the Revenue Act of 1934,
ch. 277, 48 Stat. 737, “contains no reference to a time
element.” It found, however, that the return filed by the
taxpayer was “[n]evertheless * * * not a sufficient or timely
compliance with Section 233 to entitle the petitioner to the
deductions claimed therein.” Id. (emphasis added). It held
that, in subjecting foreign corporations to section 233 of the
1934 Act, “Congress conditioned its grant of deductions upon the
timely filing of true, proper and complete returns.” Id. at 909
(emphasis added).
In Taylor Sec., Inc. v. Commissioner, supra, the Board
concluded that, once the Commissioner determined a deficiency in
tax, a taxpayer could not avoid the effect of section 233 by
thereafter filing a return. The Board stated:
[W]e are unable to conclude that in enacting section
233 * * * it was the intention of Congress that
delinquent returns filed by a foreign corporation
after the respondent's determination should constitute
the returns required as a prerequisite to the
allowance of the credits and deductions ordinarily
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