L. HAND, Circuit Judge.
This appeal involves a deficiency fixed by the Commissioner in the respondent's income tax for its fiscal year ending October 31, 1928. The facts are as follows: During the years 1926, 1927 and 1928, the respondent was a corporation affiliated with a subsidiary through ownership of all its shares. It filed a single return of the consolidated income of both for each of the three years. The loss of the respondent in 1926 was $183,173.28, of the...
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