Parker

This is a family partnership case in which appellants, husband and wife, seek to recover income taxes assessed to and paid by them for the fiscal years ending October 31, 1945, ’46, ’47, and ’48.

An earlier suit involving the tax for the year ending October 31, 1944, was decided adversely to appellants by a jury, and the judgment entered on the verdict was affirmed by this court on appeal. Parker v. Westover, 9 Cir., 186 F.2d 49 . The instant suit was originally disposed of by the court below without the taking of evidence, on the ground that the judgment concerning the year 1944 was res judicata as respects the subsequent years. On appeal the judgment was reversed and the cause remanded for the taking of evidence concerning assertedly changed conditions. Parker v. Westover, 9 Cir., 221 F.2d 603 . On remand the court, after hearing the testimony on appellant’s behalf, entered a judgment of dismissal; and the case is once more before us. ¡

The record shows that from the late 1930’s appellant Elgin Parker operated the Southern Heater Company as a sole proprietorship in the manufacture of hot water heaters, a business in which Parker had had extensive experience. After 1942 the…