McLaughlin

This is an appeal from a judgment in favor of appellee in an action brought by it against appellant as collector of internal revenue unlder sections 3220 and 3226 of the Revised Statutes (26 USCA §§ 149, 156) to recover a refund of income taxes alleged to have been illegally collected for the year 1925.

It appears that appellee filed a consolidated income tax return for the year 1925 on behalf of itself and three of its subsidiaries, Dean Witter & Go. of Seattle, Dean Witter & Co. of Los Angeles, and Dean Witter & Co. of San Francisco. Appellee paid the tax due thereon and was reimbursed therefor by each of the subsidiaries. Thereafter, upon an audit of the affairs of the companies by an internal revenue agent, it was found by the agent and disclosed by his report to the Commissioner of Internal Revenue that appellee was affiliated only with the Los Angeles company for income tax purposes and that ap-pellee had overpaid its tax in the amount of $1,366.81 and the Seattle company in the amount of $229. for the year in question. In the agreed statement of facts it is stipulated that the taxes_ were overpaid in said amounts. To recover the overpayments, this action was…