Amling-De Vor Nurseries, Inc. v. United States

These are consolidated actions for the refund of income taxes paid for the fiscal years ending April 30, 1949 and April 30, 1950. The basis of plaintiff’s claim is that it originally employed an erroneous and forbidden accounting method in reporting its income for the fiscal years ending April 30, 1948, 1949, and 1950, and is entitled to amend its returns appropriately.

Plaintiff was incorporated on June 27, 1947. It was and is engaged in the business of growing and selling rose bushes. It also markets various vegetables grown as soil conditioners for its rose beds. In reporting the income for its *304 first three years of operation, the fiscal years ending April 30, 1948, 1949, and 1950, plaintiff used an accounting method by which the costs of growing these crops were deferred rather than charged off in the year in which they were incurred. In 1951, plaintiff determined that this method of accounting was improper and accordingly filed amended returns charging off such costs as of the year in which they were incurred. The amended returns and accompanying claims for refund were rejected, and these suits followed.

The Government does not question the propriety of the accounting…