A corporation's tax year can be reopened after all statutes of limitations have expired if:
I. The tax return has a 50% nonfraudulent omission from gross income.
II. The corporation prevails in a determination allowing a deduction in an open tax year that was taken erroneously in a closed tax year.

what is the answer for this question. The answer is II right. But the explanation shows that both are wrong.   from Becker chapter 3

You are right. Answer is II.

I is wrong, because it is regarding non-fraudulent omission. For Non-fraudulent omission the statute of limitations does expire.