Daley

This is an action for the refund of income taxes paid for the year 1942, on the ground that the income reported for that year should properly have been reported for the year 1948 when it would have been substantially offset by certain losses. The income in question in its entirety represented the receipts from a Government contract for the construction, during World War II, of a Japanese Relocation Center at Delta, Utah. This contract was entered into on July 8, 1942, between the United States and a construction firm known as Daley Bros., Ltd., a partnership composed of John P. Daley, Morris Daley, and Homer Bosse, trustee for the Daley brothers’ children. Prior to this time, since 1935, John and Morris Daley had engaged in the construction business as a co-partnership known as Daley Bros. On June 30, 1942, Bosse, the trustee, joined the partnership as a limited partner, and the business was continued as Daley Bros., Ltd. Upon the securing of the so-called Delta contract, Daley Bros., Ltd., together with one William Radtke entered into a special partnership or joint venture, known as Daley Brothers Delta War Venture, for the purpose of performing the contract. The evidence is…