The opinion of the court was delivered by: KRAFT
In this action for refund of internal revenue taxes the pleadings and a lengthy factual stipulation comprise the record from which is made the following.
1. Plaintiff is a Delaware corporation with its principal place of business at Chester, Delaware County, Pennsylvania. Defendant is the United States of America.
2. Plaintiff is and during the year 1940 was engaged in the business of producing steel castings.
3. During 1940 plaintiff sold and delivered to Sun Shipbuilding and Drydock Company certain steel castings for use by Sun in ship construction under Sun's contracts with the United States Maritime Commission.
5. On May 15, 1941, pursuant to an extension of time granted, plaintiff filed for the taxable year 1940, with Walter J. Rothensies, the then Collector of Internal Revenue for the First District of Pennsylvania, its corporation income and defense, declared value excess profits and defense, and excess profits tax return, reporting $ 17,927.38 due as income and defense tax and $ 5,596.43 due as excess profits tax, which plaintiff thereafter paid. Plaintiff reported no declared value excess profits and defense tax due.
6. Thereafter there was assessed against the plaintiff for 1940 additional corporation income and defense tax of $ 9,807.36, plus interest; additional excess profits tax of $ 10,125.22, plus interest; declared excess profits and defense tax of $ 1,099.63, plus interest. Plaintiff paid the additional tax assessed with interest between June 22 and August 8, 1942.
7. Walter J. Rothensies ceased to hold office as Collector of Internal Revenue on January 31, 1945.
8. Between March 9 and June 21, 1945, plaintiff received for 1940 refunds of corporation income and defense tax in the amount of $ 278, plus interest; excess profits tax of $ 342.32, plus interest; declared value excess profits and defense tax of $ 82.14, plus interest.
9. On May 20, 1947, the United States Maritime Commission notified plaintiff that it was required to repay to the Commission $ 6,433.87 of the profits on the 1940 sales of the plaintiff on the ground that its 1940 profits were, to that extent, excessive and subject to repayment under 505(b) of the Merchant Marine Act of 1936;
10. On June 11, 1947 plaintiff applied to the Internal Revenue Bureau, pursuant to Section 3806 of the Internal Revenue Code of 1939, for a computation of tax credits to be allowed plaintiff against the amount it was required to repay to the Maritime Commission. Plaintiff and defendant have agreed that, except for Section 3806, the statute of limitations barred any refund or credit to plaintiff for 1940.
11. On July 7, 1947, the Internal Revenue Bureau notified plaintiff and the Maritime Commission that plaintiff was entitled to the following tax credits for 1940: corporation income and defense tax $ 1,442.22; excess profits tax $ 1,567.15; declared value excess profits and defense tax $ 424.63; total $ 3,434.
12. Subsequently plaintiff paid the Maritime Commission $ 2,999.87 which was the amount of the required repayment less the tax credit ...