Hind

This is a petition to review the action of the Board of Tax Appeals fixing the tax to be paid by the petitioner. This is the second appeal. On the first appeal the decision of the Board of Tax Appeals was reversed on the statute of limitations [ 52 F.(2d) 1075 ]. This court remanded the case to the Board of Tax Appeals for further consideration of the question of petitioner’s tax liability for the year 1917. The amount of the tax was fixed under the provisions of the Revenue Act of 1917. Primarily the appeal turns upon the question of whether or not the partnership composed of Hind, Rolph & Go. had any “invested capital” within the meaning of that term as defined by section 207 of the Revenue Act of 1917, 40 Stat. 300 , 306. The Board of Tax Appeals held that the copartnership had invested capital and fixed the tax accordingly. The Revenue Act of 1917, c. 63, 40 Stat. 300 , 306, defines “invested capital” as follows:

“See. 207. That as used in this title, the term ‘invested capital’ for any year means the average invested capital for the year, as defined and limited in this title, averaged monthly.

“As used in this title ‘invested capital’ does not include stocks, bonds (other…