Ann Arbor R. v. Commissioner

SIMONS, Circuit Judge.

This review involves income taxes of the Ann Arbor Railroad ' Company and its subsidiary for 1920, asserted by the respondent and redetermined by the Board of Tax Appeals as a result of disallowance oi maintenance expenditures on the ground they were made not with the funds of the roads but out of allowances by the Director General of Railroads for under-maintenance during government operation. The taxpayers contend they received nothing for undermaintenance, and the question is whether there was substantial evidence to sustain the redetermination of their taxes by the…