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Commissioner v. Scottish American Investment Co., Ltd., 323 U.S. 119 (1944)

Commissioner of Internal Revenue v.

Scottish American Investment Co., Ltd.

Argued November 16, 1944

Decided December 4, 1944*

323 U.S. 119


1. The conclusion of the Tax Court that the taxpayers in this case had "an office or place of business" in the United States was supported by substantial evidence, and its determination that they were therefore entitled to be taxed as resident foreign corporations under § 231(b) of the Revenue Acts of 1936 and 1938 could not be set aside on appellate review. P. 323 U. S. 123.

2. When the Tax Court's factual inferences and conclusions are determinative of compliance with statutory requirements, the appellate courts are limited to a determination of whether they have

Page 323 U. S. 120

any substantial basis in the evidence. The judicial eye must not, in the first instance, rove about searching for evidence to support other conflicting inferences and conclusions which the judges or the litigants may consider more reasonable or desirable. It must be cast directly and primarily upon the evidence in support of those made by the Tax Court. If a substantial basis is lacking, the appellate court may then indulge in making its own inferences and conclusions, or it may remand the case to the Tax Court for further appropriate proceedings. But, if such a basis is present, the process of judicial review is at an end. P. 323 U. S. 124.

139 F.2d 419 affirmed. 142 F.2d 401 reversed.

Certiorari, 322 U.S. 722, and post, p. 693, to review in Nos. 52, 53, and 54 affirmances, and in Nos. 220, 221, and 222, reversals, of decisions of the Tax Court, 47 B.T.A. 474, which reversed the Commissioner's determinations of deficiencies in income tax.

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