Case ID: bta_1/html/1116-01.html
Source: Caselaw Access Project
Author: {"author": "", "license": "Public Domain", "url": "https://static.case.law/"}
Date Created: 2024-08-24T03:29:51.129683

Appeal of JOHN McCARTHY & SON, INC.
    Docket No. 354.
    Submitted February 2, 1925;
    decided May 6, 1925.
    
      /Starr Parsons, Esq., and John J. Leonard, G. P. A., for the taxpayer.
    
      Robert A. Littleton, Esq., for the Commissioner.
    Before Ivins, Korner, and Marquette.
    The issue in this appeal was whether an inaccurate return filed by the taxpayer without fraudulent intent was false within the meaning of section 250 (d) of the Revenue Act of 1921.
    BINDINGS OF PACT.
    The taxpayer is a Massachusetts corporation. On July 22, 1919, it filed with the Collector of Internal Revenue of Boston, its income and profits tax return for the fiscal year ended March 31, 1919.
    Thereafter,, an examining internal revenue agent made a report recommending an addition to net income of $10,265.77, due to disal-lowance of deductions as follows:
    Income tax_ $72. 27
    Improvements deducted as repairs_ 5, 009. 61
    Loss on sale of machinery and equipment- 3, 559.85
    Depreciation reduced_ 1, 604.04
    Charitable donation-:- 20.00
    and recommended an additional tax of $1,862.57. His report was dated April 16, 1924, and was filed in the office of the Commissioner on April 26, 1924. On August 13, 1924, the Commissioner determined a deficiency against the taxpayer for the fiscal year 1919 of $1,862.57, from which determination the taxpayer appealed upon the ground that the assessment was barred by the statute of limitations contained in section 277 (a) (2) of the Revenue Act of 1924.
    The errors of the taxpayer in its income and profits tax return for 1919, if any, were due to mistake and not to any intent to defraud or to avoid payment of tax.
   DECISION.

Upon the authority of the Appeal of the National Refining Co., 1 B. T. A. 236, and the Appeal of John W. Collinson, 1 B. T. A. 561, the deficiency determined by the Commissioner is disallowed.