Burnet

The sole question at issue in this ease is whether the Wilshire Oil Company, Inc., and the Bandini Petroleum Company were affiliated during tho year 1920 within the moaning of section 240 of the Revenue Act of 1918, and therefore entitled to file a consolidated income and excess profits tax • return. The Board of Tax Appeals found that the companies were affiliated, and the Commissioner appeals.

Section 240(b) of the Revenue Act of 1918 ( 40 Stat. 1057,1082 ) provided that two or more corporations shall be deemed to be affiliated, if substantially all the stock of two or more corporations is owned or controlled by the same interests. Treasury De•partmcnt Regulation 45 (1920 Edition), art. , 633, defined what was meant by “substantially all the stock,” and provided that eonsoli’dated returns might bo required, although less than 95 per cent, of the stock was controlled. This statute and tho accompanying regulation have been recently the subject of consideration by this court, particularly as to the meaning of the word “controlled” used in section 240(b). Commissioner of Internal Revenue v. Richfield Oil Co. (C. C. A.) 42 F.(2d) 360 . The Commissioner contended in that case, as he…