In the Matter of FP Newport Corp., Ltd.

The petition to review the Order of the Referee dated May 28,1956, disallowing federal income taxes for the years 1952, 1953, 1954 and 1955, heretofore argued and submitted, is now decided as follows:

The said Order is affirmed and the Findings of Fact and Conclusions of Law of the Referee of the same date are adopted as those of the Court.

Comment

This case comes up for review after a previous Order disallowing taxes for the year 1952 was reversed. United States v. Sampsell, 9 Cir., 1955, 224 F.2d 721 . The ground for the reversal was that the Order disallowing the taxes was based upon the Order of Liquidation and no more, the Court of Appeals being of the view that the Order of Liquidation alone does not determine taxability. Rather what the Trustee does under it should govern the matter. United States v. Metcalf, 9 Cir., 1942, 131 F.2d 677 ; State Board of Equalization of State of California v. Boteler, 9 Cir., 1942, 131 F.2d 386 ; California State Board of Equalization v. Goggin, 9 Cir., 1951, 191 F.2d 726 , 27 A.L.R.2d 1211 .

The Court of Appeals in the prior appeal in the present case referred to both the Goggin and Metcalf cases, although they pertained to state sales…