Lucas

This is an appeal from an order of the United States Board of Tax Appeals made after rehearing ordered on a previous appeal by this court. Royal Packing Co. v. Commissioner of Internal Revenue, 22 F.(2d) 536 . We refer to the previous opinion for a statement of the facts.

The question involved is the right of the taxpayer to charge off $15,000 as a loss incurred in the fiscal year January 31, 1919, because certain stock of the Universal Packing Company, owned by it, had ¡become worthless. The Board of Tax Appeals concluded that the taxpayer had not sustained the burden of proof that the stock was worthless on January 31,1919, and for that reason declined to allow that loss as a deduction. It is conceded that, unless the stock had become absolutely worthless during the tax year of January 31, 1919, a deduction for depreciation of the value of the stock could not be claimed as a loss during the taxable year. Section 234 (a)(4), Rev. Act of 1918, 40 Stat. L. 1078; Treasury Regulations No. 45, arts. 141, 144, 145, 561; Royal Packing Co. v. Commissioner, supra. The evidence adduced before the Board of Tax Appeals on the rehearing was much more definite and specific than that at the…