John Factor v. Commissioner of Internal Revenue

Before us is a petition filed October 22, 1958, to review the decision of the Tax Court entered July 24, 1958, relating to federal income taxes for the taxable years 1935 and 1936.

On August 9, 1946, the Commissioner of Internal Revenue mailed to the taxpayer notice of deficiencies in the amount of $38,315.03 for the year 1935 and $134,-912.23 for the year 1936, with an added fraud penalty of fifty per cent for each year.

On November 4, 1946, i. e., within the ninety day period, the taxpayer filed a petition with the Tax Court for a redetermination of the deficiencies. The specification of errors relates to five topics which the taxpayer has summed up in this manner:

(a) The Tax Court erred in holding that the corporate entity of Montray should be ignored and thereby imposed an improper burden of proof on taxpayer;

(b) The Tax Court erred in holding that the deposits in the Miss C. Pitts bank account with the Lake Shore Trust and Savings Bank, Chicago, Illinois, constituted income to the taxpayer;

(c) The Tax Court committed plain error in its treatment of the Consolidated Diana transaction;

(d) The Tax Court committed plain error in refusing to consider and in failing to…