Harlan F. Stone,
Electro-Chemical Engraving Company v…
“ The Board of Tax Appeals ruled that petitioner's loss was deductible in full from its ordinary income. The Court of Appeals for the Second Circuit reversed the Board, 110 F.2d 614, holding that the loss sustained by petitioner was a loss from a sale of capital assets, § 23 (j) , which under § 117 (d) could be deducted from the gross income only to the extent of capital gains, plus $2,000. ”
