UNITED STATES COURT OF APPEALS FOR THE SECOND CIRCUIT
decided: November 17, 1970.
REGAL, INCORPORATED, PETITIONER -APPELLANT,
COMMISSIONER OF INTERNAL REVENUE, RESPONDENT-APPELLEE
Moore, Friendly and Adams,*fn* Circuit Judges.
Author: Per Curiam
The issues here presented are succinctly stated by the Tax Court as follows:
"The Commissioner determined a deficiency in the income tax of petitioner for the taxable year ended January 31, 1965 in the amount of $64,347.39. At issue is whether petitioner and its subsidiaries were required to file a consolidated Federal income tax return for their taxable year ended January 31, 1965 solely because they elected to file a consolidated Federal income tax return for the previous taxable year."
Appellant Regal, Inc. claims that Treasury Regulation 1.1502-11A is invalid.*fn1 This regulation provides, with appropriate exceptions that once an affiliated group of corporations elects to file a consolidated return, such group must continue to file on a consolidated basis until permission of the Commissioner of Internal Revenue be obtained to make a change. We affirm the decision of the Tax Court upon the facts and for the reasons stated by Judge Raum in his opinion below, 53 T.C. 261 filed November 17, 1969.