Commissioner v. Idaho Power Co.

This case presents the sole issue whether, for federal income tax purposes, a taxpayer is entitled to a deduction from gross income, under § 167 (a) of the Internal Revenue Code of 1954, 26 U. S. C. § 167 (a),1 for depreciation on equipment the taxpayer owns and uses in the construction of its own capital facilities, or whether the capitalization provision of §263 (a)(1) of the Code, 26 U. S. C. § 263 (a)(1),2 bars the deduction.

*4The taxpayer claimed the deduction, but the Commissioner of Internal Revenue disallowed it. The Tax Court (Scott, J., in an opinion not reviewed by the full court)…