Document: 349 U.S. 232 75 S.Ct. 733 99 L.Ed. 1024 The UNITED STATES, Petitioner,v.OLYMPIC RADIO AND TELEVISION Inc. No. 10. Argued April 18, 19, 1955. Decided May 23, Asst. Atty. Gen. H. Brian Holland, for petitioner. Mr. Frederick R. Tansill, Washington, D.C., respondent. Justice DOUGLAS delivered the opinion of Court. 1 This suit was brought in Court Claims a tax refund. taxpayer, New York corporation, kept its books and accounts on accrual basis filed federal income returns same basis, using calendar year. taxpayer had net operating loss $310,872.60 1946. carried back set off against taxpayer's excess profits 1944 1944, adjusted accordingly. That carryback authorized by Internal Revenue Code 1939, § 122, 26 U.S.C.A. 122; it is not controversy here. 2 reported an liability $346,643.22 1945. In 1946 paid $263,272.80 taxes It contends that amount, 1946, should have been added to year sum those figures, instead $310,872.60, as loss. If that, done, United States would now owe refund claimed. 3 Claims, divided vote, sustained contention held computing entitled include amount account 1945 return. Judgment accordingly entered taxpayer. 108 F.Supp. 109, 110 600, 124 Ct.Cl. 33, 39. case here petition writ certiorari which we granted, 348 808, 23 because conflict between decision below Lewyt Corp. v. Commissioner, 215 F.2d 518, decided Appeals Second Circuit. 4 Section 23(s) Code, 23(s), provides income, 'the deduction computed under section 122' shall be allowed deduction. applicable here, complicated formula carrying losses two preceding taxable years over into succeeding years, thus taking limited purpose 122 five-year period accounting unit. part seeks take advantage (b) (1) relating carry-back.* By express terms 122(b)(1) carry-back provisions are subject limitations contained 122(d)(6), part, 'There imposed Subchapter E Chapter or accrued within * *.' 2, 710 et seq., identifies may used Excess Profits Tax. But if deduction, must 'paid accrued' 5 revolves around meaning accrued.' were profit 1947 accounting. Its therefore 1945, though Yet argument prevailed could 122(d)(6) We other view conclude does grant option deductions inconsistent with method employs. 6 41 states general rule 'in accordance regularly employed keeping books' 41. 7 43 credits taken 'for incurred', dependent upon computed, unless order clearly reflect different period.' 43. 8 48 provides, 'When this chapter (c) construed according Part.' 48. provision itself seem conclusive question, since chapter', use language And 48, together 43, indicate words only one throughout chapter, changeable give them. 9 deal obtains right, but grace. Deputy du Pont, 308 488, 493, 60 363, 366, 84 416. has burden show allowing effort made, successful, cause accrued,' mean something than sections chapter; fly face command 10 recognized force analysis, concluded Congress meant what said because, so, particular little application. First, most corporations cash basis. Second, year, value there 'rarely when liable any at 111, 37. argues inequity results follow from our construction Code. before, 'general equitable considerations' do control question permissible. de supra, 366. granted less some thought originally intended. can find great internal symmetry consistency permit. faithful statutory scheme, revealed employed, gave purposes parts chapter. 11 Our harmony accrual. See Security Flour Mills Co. 321 281, 64 596, 88 725. 12 fact feel compelled make favors discriminates suggest changes law desirable. they 13 Reversed. 14 HARLAN took no consideration case. 'Net carry-back' reads follows: 'If beginning after December 31, 1941, loss, such each except first excess, any, second (A) exceptions, additions, provided subsection (d)(1), (2), (4), (6), (B) determining without regard loss.'

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