-32-
argued that this finding meant that the taxpayer was not entitled
to its deductions. The Board disagreed, stating:
this is not a “no return” case. It is obvious,
however, that the petitioner was delinquent in filing
its returns. The returns were due not later than
June 15, 1930 and June 15, 1931, whereas they were not
filed until after June 12, 1934. The Commissioner
argues that this foreign corporation can not receive
the benefit of the deductions and credits allowed under
Title I of the Revenue Act of 1928 because the filing
of the delinquent returns was not the filing of returns
“in the manner prescribed” in Title I. This same
argument has been considered and rejected by the Board
in the case of Anglo-American Direct Tea Trading Co.,
Ltd., 38 B.T.A. 711. It is rejected here on authority
of that case. [Am. Inv. and Gen. Trust Co., Ltd. v.
Commissioner, supra.]
E. Taylor Sec., Inc.
Next, the Board decided Taylor Sec., Inc. v. Commissioner,
40 B.T.A. 696 (1939). There, the Commissioner issued a notice of
deficiency to the foreign corporation taxpayer on March 23, 1937.
That notice reflected substitute returns that the Commissioner
had prepared for the taxpayer’s 1930 through 1935 taxable years,
using only the taxpayer’s income. On June 16, 1937, the taxpayer
petitioned the Board as to the notice of deficiency, and the
Commissioner answered the petition shortly thereafter. On
October 20, 1938, the taxpayer was notified by the Board that a
hearing was set for a stated session of the Board beginning
December 5, 1938. Subsequently, after the Board continued the
date of that hearing until January 16, 1939, the taxpayer filed
its 1930 through 1935 tax returns on December 13, 1938.
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