McLaughlin

This is an appeal from a judgment in favor of a taxpayer and against tbe collector of internal revenue for the recovery of taxes illegally collected. The case has been brought here for review on the judgment roll, and the sufficiency of the complaint to support the judgment is the only question presented for decision. The- amount or value of the invested capital of the taxpayer during the year 1919 is the question at issue between the parties.

The complaint alleged, in general terms, that during that year the net taxable income of the taxpayer was the" sum of approximate^ly $625,000, and the true amount of invested capital the sum of approximately $3,230,000. These general allegations are sufficient, against an objection raised for the first time after judgment, unless it affirmatively appears from other allegations of the complaint that certain deductions made by the collector of internal revenue from the amount of the invested capital were authorized by law. The items thus deducted are four in number.

The first and principal item is thus explained. On January 2, 1918, the taxpayer purchased all the assets, consisting of stock in trade, furniture, and fixtures, accounts…