Great Western Power Co. v. Commissioner of Internal Revenue

The parties disagree as to petitioner’s right to deduct from gross income for 1924 unamortized discount, premiums, and expenses paid, and incurred in that year in connection with the retirement of certain bonds. The petitioner took the deduction in its income tax return. The respondent disallowed it and determined a deficiency.. The petitioner appealed to the Board, of Tax Appeals which held the deduction proper. The Circuit Court of Appeals reversed the Board’s decision in part. We granted the writ to resolve a conflict.

March 1, 1919, the company executed a mortgage securing. four series of…