In re Assessment of Income Taxes, Ewa Plantation Co.

OPINION OP THE COURT BY

BALLOU, J.

Ewa Plantation Company returned its gross income for the year 1906 at $1,901,928.11 derived almost entirely from sales of sugar. Against this it claimed a deduction of $1,290,109.7(> under the heading “Amounts expended in the purchase or production of movable property mentioned in Schedule A.” This with other deductions which are not in issue brought its net income, as returned, to $571,929.56, on which the tax at two *531per cent, amounted to $1 1,558.59. Included in the deduction of $1,290,109.76, as shown by the hooks of the corporation, was the amount of…