Huntley

The plaintiff-appellee sued to recover the amount of income taxes paid by it for the taxable year ending August 31, 1925, on the ground that the tax had been erroneously and illegally assessed against it and collected and withheld by the defendant-appellant. A demurrer to the complaint was overruled; the defendant elected to stand on the demurrer; and this appeal is from the judgment entered in favor of appellee.

The complaint discloses that on November 15,1925, appellee filed its corporation income an'd profits tax return for the year in question, showing a net taxable income of $27,657.89 and a total income tax of $3,457.-24, which was paid in quarterly installments on November 17, 1925, February .20, 1926, May 22, 1926, and August 12, 1926, respectively. Later it was discovered that appellee had suffered a net loss of $4,288.46 for the taxable year in question and that there was therefore an overassessment of its tax liability for that year in the amount of $3,457.-24, the sum paid as income tax. March 15, 1929, a claim for refund of this amount was filed with the Commissioner of Internal Revenue.

The tax was paid pursuant to the Revenue Aet of 1924, which, by section 281…