Page:United States Statutes at Large Volume 54 Part 1.djvu/1035

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54 STAT.] 76TH CONG., 3D SESS.-CH. 757-OCT. 8 , 1940 adjustment is so prevented, then the amount of the adjustment authorized in this paragraph shall be limited to the increase or decrease in the tax previously determined for such taxable year which results solely from the effect of paragraph (4) of this subsection, and such amount shall be assessed and collected, or credited or refunded, in the same manner as if it were a deficiency or an overpayment, as the case may be, for such taxable year and as if on the date of such certificate or such proclamation, whichever is the basis of the taxpayer's election under this sub- section, one year remained before the expiration of the periods of limitation upon assessment or filing claim for refund for the taxable year. The tax previously determined shall be ascertained in accordance with section 3801 (d). The amount to be assessed and collected under this paragraph in the same manner as if it were a deficiency, or to be refunded or credited in the same manner as if it were an overpayment, shall not be diminished by any credit or set-off based upon any item, inclusion, deduction, credit, exemption, gain, or loss, other than one resulting from the effect of paragraph (4) of this subsection. Such amount, if paid, shall not be recovered by a claim or suit for refund or suit for erroneous refund based upon any item, inclusion, deduction, credit exemption, gain, or loss, other than one resulting from the effect of paragraph (4) of this subsection. "(e) DEFINITIONS.- "(1) EMERGENCY FACILITY. -As used in this section, the term 'emergency facility' means any facility, land, building, machin- ery, or equipment, or part thereof, the construction, reconstruc- tion, erection, or installation of which was completed after June 10, 1940, or which was acquired after such date, and with respect to which a certificate under subsection (f) hag been made. "(2) EMERGENCY PERIOD.- As used in this section, the term 'emergency period' means the period beginning June 10, 1940, and ending on the date on which the President proclaims that the utilization of a substantial portion of the emergency facilities with respect to which certifications under subsection (f) have been made, is no longer required in the interest of national defense. " (f) DETERMINATION OF ADJUSTED BASIS OF EMERGENCY FACILTY. - In determining, for the purposes of subsection (a) or subsection (h), the adjusted basis of an emergency facility- "(1) There shall be included only so much of the amount otherwise constituting such adjusted basis as is properly attribut- able to such construction, reconstruction, erection, installation, or acquisition after June 10, 1940, as the Advisory Commission to the Council of National Defense and either the Secretary of War or the Secretary of the Navy have certified, within the time specified in paragraph (3) of this subsection, and under such regulations as the President may prescribe, as necessary in the interest of national defense during the emergency period; "(2) After the completion or acquisition of any emergency facility with respect to which a certificate under paragraph (1) has been made, any expenditure (attributable to such facility and to the period after such completion or acquisition) which does not represent construction, reconstruction, erection, installation, or acquisition included in such certificate, but with respect to which a separate certificate is made under paragraph (1), shall not be applied in adjustment of the basis of such facility and shall be considered as an expenditure with respect to a new emergency facility; and 1001 Ascertainment of tax. 63 Stat. 473. 26 U. S. C., Supp. V, § 301 (d). No recovery by claim, etc. "Emergency facil- ity." " Emergency pe- riod." Determination of adjusted asis of emer- gency facility. Ante, p. W9W;post, p. 1002. Amount Included. Expenditures.