Case: Appeal of ORENTS DEPARTMENT STORES, INC.
Abbreviation: Appeal of Orents Department Stores, Inc.
Decision Date: 1925-11-16
Docket Number: Docket No. 2400
Citation: 3 B.T.A. 52
Volume: 3
Reporter: Reports of the United States Board of Tax Appeals
Court: United States Board of Tax Appeals
Jurisdiction: United States
Parties: Appeal of ORENTS DEPARTMENT STORES, INC.
Judges: Before Graupner and Trammell.
Pages: 52–53

Head Matter:
Appeal of ORENTS DEPARTMENT STORES, INC.
Docket No. 2400.
Submitted September 24, 1925.
Decided November 16, 1925.
E. M. Sclt/wafi-aenberg, Esq., for the taxpayer.
F. O. Graves, Esq., for the Commissioner.
Before Graupner and Trammell.

Opinion:
OPINION.
Trammell:
The taxpayer took its closing inventory for 1918 on the basis of cost and undertook to reduce it to an alleged market by a straight reduction of 10 per cent with respect to certain goods which were claimed to have been shopworn or out of style. The Commissioner properly disallowed such a reduction. The disallowance of such a reduction in inventory for the close of 1918, if the Commissioner accepted a similar reduction in the closing inventory for the previous year which was the opening inventory for the taxable year, would cause an unwarranted shifting of income. But we have no evidence as to 'what action was taken by the Commissioner for the opening inventory for 1918, and we therefore approve his action in disallowing the reduction in the closing inventory.