United States v. W. A. Rushlight, Raymond G. Rushlight, and W. A. Rushlight, of the Estate of Betty Rushlight, Deceased

This appeal involves refunds of federal income taxes for the taxable years 1946 through 1950. Jurisdiction was conferred on the district court by Title 28 U.S.C.A. § 1346 (a). This Court has jurisdiction under Title 28 U.S.C.A. §§ 1291 and 1294.

In this opinion we will refer to the appellant as the “government” and to the appellees as the “taxpayers”.

The taxpayers filed refund claims for the years 1946 through 1950, based on adjustments for (1) depreciation on certain farm assets, and (2) the elimination of gain on the sale of equipment, depreciation on the buildings, furniture, and’ fixtures, and the loss on salvaged equipment of a partnership steel works. The claims originated in certain tax adjustments made by the Tax Court and the Commissioner of Internal Revenue with respect to taxpayers for the years 1942' through 1945.

The refund claims were disallowed by the Commissioner. Following trial in the district court, judgment was entered' for taxpayers, awarding all of the refunds claimed, in an aggregate sum of $5,845.00, together with interest at the rate of six per cent per annum from the appropriate dates.

The facts are not in dispute. The only question presented on this…