No. 145.Circuit Court of Appeals, Second Circuit.
June 27, 1932.
Appeal from the United States Board of Tax Appeals.
Petition to review an order of the Board of Tax Appeals determining a deficiency in income of the taxpayer for the fiscal year ending July 31, 1923 (21 B.T.A. 897). The taxpayer files the petition. Order affirmed.
Oscar W. Underwood, Jr., and H.C. Kilpatrick, both of Washington, D.C., for petitioner.
G.A. Youngquist, Asst. Atty. Gen., and Sewall Key and Norman D. Keller, Sp. Assts. to Atty. Gen. (C.M. Charest, Gen. Counsel, Bureau of Internal Revenue and J.M. Leinenkugel, Sp. Atty., Bureau of Internal Revenue, of Washington, D.C., of counsel), for respondent.
Before MANTON, SWAN, and AUGUSTUS N. HAND, Circuit Judges.
PER CURIAM.
A consolidated income tax return for the petitioner, a New York corporation, and the Nash-Newark Company, a New Jersey corporation, was filed for the fiscal year 1923. The question presented is whether a net loss suffered by a corporation in the year prior to its affiliation with the petitioner may be carried forward to the next succeeding year in which it was affiliated with the petitioner and applied against the petitioner’s net income in computing consolidated net income for such year. The question presented here has been answered by the cases of Commissioner of Internal Revenue v. Ben Ginsburg Co., 54 F.2d 238 (decided by this court November 2, 1931) and Swift Co. v. United States, 38 F.2d 365 (Court of Claims), and, upon the authority of these cases, the order must be affirmed.
Order affirmed.
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