-33-
The Board held that the taxpayer was not entitled to its
claimed deductions because it had not filed a return as required
by the statute. In rejecting any argument that the taxpayer’s
returns were “returns” for this purpose, the Board distinguished
Anglo-Am. Direct Tea Trading Co. v. Commissioner, supra, on the
grounds that there the taxpayer had filed its returns before the
notice of deficiency was issued, those returns had been audited
(not the returns prepared by the revenue agent), and the returns
prepared by the revenue agent had never been accepted by the
Commissioner. See Taylor Sec., Inc. v. Commissioner, supra at
702-703. The Board stated:
Here the question is whether the petitioner, by
filing returns after the respondent made his
determination of deficiencies under the circumstances
presented, relieved itself of the adverse condition in
which it was situated by reason of section 233 and is
entitled to the benefits to which it would otherwise
have been entitled by the timely filing of returns. In
our opinion it may not.
* * * we are unable to conclude that in enacting
section 233, supra, 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 allowable to
the corporations. * * * By section 233 the allowance
to foreign corporations of the credits and deductions
ordinarily allowable is specifically predicated upon
such corporations filing returns. In view of such a
specific prerequisite it is inconceivable that Congress
contemplated by that section that taxpayers could wait
indefinitely to file returns and eventually when the
respondent determined deficiencies against them they
could then by filing returns obtain all the benefits to
which they would have been entitled if their returns
had been timely filed. Such a construction would put a
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