Los Angeles Shipbuilding & Drydock Corporation v. United States of America, United States of America v. Los Angeles Shipbuilding & Drydock Corporation

The district court entered judgment in favor of Los Angeles Shipbuilding & Drydock Corporation (hereinafter called “taxpayer”) and against the United States for refund of income taxes erroneously paid for the taxable year 1941, in the sum of $208,870.78 together with interest on said amount at the rate of Six per centum (6%) per annum from the date of payment thereof to March 4, 1949, and interest at the rate of Six per centum (6%) per annum on the amount of $33,881.60 from March 4, 1949, to the date described by section 2411 of Title 28, U.S.C., less the amount of $175,489.18 which defendant shall have and recover of plaintiff against amounts herein adjudged due plaintiff from defendant.

The United States appeals from the judgment in favor of taxpayer, and the taxpayer appeals from that part of the judgment allowing the amount of $175,-489.18 to defendant by way of offset and recoupment against amounts therein adjudged due taxpayer from the United States.

The district court had jurisdiction under Title 28 U.S.C.A. § 1346 (a), and this Court’s jurisdiction is based upon Title 28 U.S.C.A. §§ 1291 and 1294.

In order to point up the questions presented by these cross appeals, it…