-45-
Accord Am. Inv. and Gen. Trust Co. v. Commissioner, a Memorandum
Opinion of the Board of Tax Appeals dated April 13, 1939; Mills,
Spence & Co. v. Commissioner, a Memorandum Opinion of the Board
of Tax Appeals dated Oct. 5, 1938. In addition, the Court of
Appeals for the Fourth Circuit in Ardbern Co. v. Commissioner,
120 F.2d at 425-426, quoted and applied favorably the following
holding from Anglo-Am. Direct Tea Trading Co. in deciding for the
taxpayer:
Inasmuch as separate sections deal with “manner” and
“time,” we think it highly improbable that Congress
ever intended to include the element of time in the
section dealing primarily with the manner of filing.
We hold, therefore, that the mere fact the return was
not filed within the time prescribed by Section 235
does not, under the circumstances here presented,
preclude the allowance of deductions claimed.
I. Inverworld, Inc.
In Inverworld, Inc. v. Commissioner, T.C. Memo. 1996-301,
the taxpayer was a foreign corporation that had not as of the
time of trial filed a Federal income tax return for any of the
relevant years. All of those years predated the effective date
of the disputed regulations. See discussion infra p. 48.
The taxpayer noted that the applicable regulations had been
issued in 1957 and that those regulations did not contain a
timely filing requirement. The taxpayer argued that such a
requirement was therefore not applicable to the relevant years.
The Court did not decide that argument. Instead, the Court
applied the opinions of the Court of Appeals for the Fourth
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