Swallows Holding, Ltd. - Page 76

                                        -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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