Diller

In his income tax return for 1927, petitioner claimed a deduction for bad debts in the amount of $34,404.74. The debts in question were represented by promissory notes owned and held by petitioner. Respondent, the Commissioner of Internal Revenue, disallowed the deduction and, in consequence of such disallowance, determined that there was a deficiency of $3,656.39 in respect of petitioner’s income tax for 1927, and so notified petitioner, who thereupon petitioned the Board of Tax Appeals for redetermination of the alleged deficiency. Thereafter petitioner filed with the Board an amended petition in which he claimed a further deduction of $56(320.22 on account of an alleged loss from a sale of stock which he claimed to have made on December 15, 1927.

Respondent’s answer denied that the debts in question were ascertained to be worthless in 1927, or that they were charged off in 1927, or that the stock in question was sold by petitioner in 1927, or that petitioner suffered any loss from such sale, or that he was entitled to either of the claimed deductions. The-case went to trial, evidence was submitted by both parties, and the Board rendered its decision in respondent’s favor.…