Western Terminal Company v. United States

This appeal involves federal income taxes for the year 1960. On June 3, 1964, the taxpayer (Appellant) paid a deficiency of its taxes for 1960 in the sum of $203,222.05. A timely claim for refund was thereafter filed which was rejected and this action was timely filed in the District Court. This appeal is from the judgment of said court entered in favor of the United States of America (Appellee) on September 1, 1967. The District Court had jurisdiction under Title 28 U.S.C. § 1346 (a) and this court has jurisdiction under Title 28 U.S.C. § 1391 .

The questions presented by Appellant on the appeal are:

It is disclosed in the trial record that the trial judge in making his findings and conclusions in regard to the useful life of taxpayer’s storage facility relied on hindsight evidence, citing as authority for so doing the case of Lassen Lumber & Box Co. v. Blair, 27 F.2d 17, 20 (9th Cir. 1928). It appears from the record that at the time of trial the Government and the court considered hindsight evidence to be competent in determining the useful life of the facility in question. At the conclusion of the trial, the trial judge emphasized the fact that in making his decision he was…