AVIS, District Judge.
The plaintiff brought suit against the defendant to recover claimed overpayments of income and excess profits tax for the year 1917.
The parties, by stipulation duly filed, have waived a trial by jury, and submitted the case to the court without the intervention of a jury.
The facts have been submitted by stipulation and deposition, which show, generally, that the plaintiff, Blackwood Coal & Coke Company, Blackwood Land Company, Roaring Fork Railroad Company, Pardee Company, and Chestine Land Corporation, each submitted for the year 1917 tax returns upon which the plaintiff paid to the defendant $577,516.92; and Blackwood Coal & Coke Company and Roaring Fork Railroad Company, filing a consolidated return, paid to the defendant $57,780.40, a total of $635,297.32.
The returns of the other corporations named did not show any tax due and owing, but subsequently the Blackwood Land Company was required by the collector to pay a tax of $1,604.28, together with $773.21 interest, a total of $2,377.49.
After these payments had been made, and in the year 1921, before the enactment of the 1921 Revenue Act, the Commissioner of Internal Revenue ruled that the aforesaid corporations were affiliated during the year 1917, to such an extent as to require them to file a consolidated return, and to pay taxes in accordance therewith.
The various corporations thereupon filed a consolidated return, which showed a tax liability for the year 1917 of $473,112.18.
After the filing of the consolidated return, and the aforesaid corporations had signed the agreement of approval, claim for refund was duly filed, and subsequently, before the claim for refund was rejected, the Bureau of Internal Revenue reversed its ruling, and declared said corporations not affiliated during the year 1917, and consequently not entitled to file a consolidated return. The claim for refund was ultimately rejected, and this suit brought.
The amount claimed by the plaintiff in this suit is the difference between $635,297.32, actually paid, and the amount claimed as tax liability, under the consolidated return, to wit, $473,112.18, or the sum of $162,185.14, with interest from June 14, 1918, and, in addition, the sum paid by Blackwood Land Company, $2,377,49, with interest from April 13, 1929.
The ownership of the stock of the aforesaid corporations was, in 1917, as follows:
Blackwood Roaring Chestine
C. Pardee Coal & Blackwood Fork Pardee Land Cor-
Stockholder Works Coke Co. Land Co. R.R. Co. Co. poration
C. Pardee (father) 52.45% 93.65% 48.85% 6.24% 99.6% 98.63%
Ario Pardee (son) 7.45 .63 6.39 .07 0.1 .23
Alfred D. Pardee 5.00 .63 6.39
Helen Pardee 5.00 .63 6.39
Olive Pardee 5.00 .63 6.39
Howard Pardee 5.00 .63 6.39
Mary C. Pardee 5.00 1.25
Estelle Pardee 5.00 .63 6.39
Alice Pardee 5.00 .63 6.39
C. Pardee, Jr. 5.00 .63 6.39 .07 0.1 .23
lawyers, etc. 0.10 .06 .03 .29 0.2 .91
Blackwood Coal & 93.33
Totals 100% 100% 100% 100% 100% 100%
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