DISTRIBUTORS v. SHAW, COMMISSIONER OF REVENUE

Plaintiff and Catholic Books (Southeast) Inc., domestic corporations, merged on 1 June 1954. Plaintiff is the surviving corporation. Catholic Books (Southeast) Inc. sustained an economic loss of $15,221.23 in its fiscal year ending 31 May 1953 and for the year ending 31 May 1954 a loss amounting to $5,022.85. Plaintiff, the surviving corporation, deducted these two losses from its income for the fiscal year ending 31 May 1955. The deduction was disallowed and a tax assessed on the amount so deducted. The tax was paid under protest and refund was refused. This suit is to recover the amount so paid. The Court rendered judgment on the pleadings which establish the above facts. Defendant appealed.