Helvering v. St. Louis Southwestern Ry. Co.

WOODROUGH, Circuit Judge.

This is a petition by the Commissioner of Internal Revenue to review the decision of the Board of Tax Appeals of June 29, 1935 (unreported).

It appears that the taxpayer, St. Louis Southwestern Railway Company, kept its accounts in accordance with the classification of accounts prescribed by the Interstate Commerce Commission, and its income was returned on an accrual basis. During the taxable year 1924, it retired certain equipment acquired prior to July 1, 1907, and, in accordance with instructions contained in the “Classification of Accounts,” entered on its books a…