Texas & Pacific Ry. Co. v. United States

During federal control of railways that of petitioner was operated by the Director General under the act of March 21, 1918. Pursuant to the Transportation Act, 1920, 2 the Government relinquished the property March 1, 1920; petitioner accepted the provisions of § 209 3 of the act, and consequently received for the six months period commencing March 1, 1920, an allowance awarded by the Interstate Commerce Commission to make good the guaranty embodied in that section. The company omitted this sum from taxable income returned for the year 1920. After audit the Commissioner of Internal Revenue…