PUBLIC LAWS-CH. 619-OCT. 21, 1942 the taxpayer with respect to whom the determination is made (in case the net effect of the adjustment would be an increase in the income taxes previously determined for such year or years) which position is inconsistent with the treatment accorded such item in the prior taxable year or years which was not correct under the law applicable to such year. "(3) BURDEN OF PROOF.- In any proceeding before the Board or any court the burden of proof in establishing that an incon- sistent position has been taken (A) shall be upon the Commis- sioner, m case the net effect of the adjustment would be an in- crease in the income taxes previously determined for the prior taxable year or years, or (B) shall be upon the taxpayer, in case the net effect of the adjustment would be a decrease in the income taxes previously determined for the prior taxable year or years. "(C) METHOD AND EFFECT OF ADJUSTMENT.- "(1) The adjustment authorized by subsection (b), in the amount ascertained as provided in subsection (d), if a net increase shall be added to, and if a net decrease shall be sub- tracted from the tax otherwise computed under this subchapter for the taxable year with respect to which such inconsistent position is adopted. "(2) If more than one adjustment under this section is made because more than one inconsistent position is adopted with respect to one taxable year under this subchapter, the separate adjustments, each an amount ascertained as provided in sub- section (d), shall be aggregated, and the aggregate net increase or decrease shall be added to or subtracted from the tax other- wise computed under this subchapter for the taxable year with respect to which such inconsistent positions are adopted. "(3) If all the adjustments under this section, made on account of the adoption of an inconsistent position or positions with respect to one taxable year under this subchapter, result in an aggregate net increase, the tax imposed by this subchapter shall in no case be less than the amount of such aggregate net increase. "(4) If all the adjustments under this section, made on account of the adoption of an inconsistent position or positions with respect to a taxable year under this subchapter (hereinafter in this paragraph called the current taxable year), result in an aggregate net decrease, and the amount of such decrease exceeds the tax imposed by this subchapter (without regard to the pro- visions of this section) for the current taxable year, such excess shall be subtracted from the tax imposed by this subchapter for each succeeding taxable year, but the amount of the excess to be so subtracted shall be reduced by the reduction in tax for inter- vening taxable years which has resulted from the subtraction of such excess from the tax imposed for each such year. "(d) ASCERTAINMENT OF AMOUNT OF ADUSTMENTr. -In computing the amount of an adjustment under this section there shall first be ascertained the amount of the income taxes previously determined for each of the prior taxable years for which correction is prevented. The amount of each such tax previously determined for each such taxable year shall be (1) the tax shown by the taxpayer, or by the predecessor, upon the return for such prior taxable year, increased by the amounts previously assessed (or collected without assessment) as deficiencies, and decreased by the amounts previously abated, credited, refunded, or otherwise repaid in respect of such tax; or (2) if no amount was shown as the tax by such taxpayer or such predecessor 922 [56 STAT.
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