Ambassador Hotel Company of Los Angeles, a Corporation v. Commissioner of Internal Revenue

This is a taxpayer’s petition to review a decision of the Tax Court upholding the Commissioner’s determination of a deficiency. Ambassador Hotel Co. of Los Angeles v. Commissioner, 1959, 32 T.C. 208 . The jurisdiction of this Court is invoked under 26 U.S.C. § 7482 (a).

The facts are undisputed. Both income tax and excess profits tax were assessed to the taxpayer for its tax year ending January 31, 1944, the excess-profits tax assessment having been made pursuant to §§ 710 and 711 of the 1939 Internal Revenue Code. [26 U.S.C. §> 710 and 711 (1939), repealed by 59 Stat. 568 (1945).] Challenging the excess-profits tax assessment for that year, petitioner sought a redetermination in the Tax Court. ■ This attack upon the excess-profits tax assessment was successful, and on April 12, 1955, the Tax Court entered a final order in favor of the taxpayer. Specifically, this order determined that petitioner was entitled to a refund or credit of $26,475.54 for overpayment of excess profits tax. Ambassador Hotel Co. of Los Angeles v. Commissioner, 1954, 23 T.C. 163, 168-169 .

By virtue of the provisions of the 1939 Code, a reduction in excess profits tax ipso facto resulted in a correlative…