Niles Bement Pond Co. v. United States, 281 U.S. 357 (1930)

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Niles Bement Pond Co. v. United States


No. 314


Argued March 7, 12, 1930
Decided April 14, 1930
281 U.S. 357

CERTIORARI TO THE COURT OF CLAIMS

Syllabus

1. Findings by the Court of Claims that the controlling plan of a taxpayer’s accounts was to show income upon an accrual basis and that its tax returns were on that basis are conclusive on review. P. 360.

2.Under the Revenue Acts of 1916 and 1918, the Commissioner may correct a return so as to reflect true income by conforming to the dominating and controlling character of the taxpayer’s system of accounts. Id.

3. In computing the net income of a domestic corporation keeping its books on the accrual basis, foreign taxes paid in the tax years should not be deducted if they accrued in prior years and their deduction in those years was necessary to ascertain true income. Id.

4. It is to be presumed that taxes paid are rightly collected upon assessments correctly made by the Commissioner, and, in a suit to recover them, the burden rests upon the taxpayer to prove all the facts necessary to establish the illegality of the collection. P. 361.

7 Ct.Cls. 693 affirmed.

Certiorari, 280 U.S. 543, to review a judgment for the United States in a suit to recover money alleged to have been illegally collected as income and excess profits taxes.