Texas & Pac. Ry. v. Commissioner
United States Board of Tax Appeals
1. Amounts donated to petitioners by private individuals and corporations for construction of spur tracks and facilities do not constitute taxable income. 2. Petitioner paid an assessment to the Association of Railway Executives in 1919 which sum respondent in his answer affirmatively alleges is not an ordinary and necessary expense of doing business, and therefore not an allowable deduction within the meaning of the statute.
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1. Amounts donated to petitioners by private individuals and corporations for construction of spur tracks and facilities do not constitute taxable income. 2. Petitioner paid an assessment to the Association of Railway Executives in 1919 which sum respondent in his answer affirmatively alleges is not an ordinary and necessary expense of doing business, and therefore not an allowable deduction within the meaning of the statute. Respondent not having adduced sufficient evidence to sustain his allegation that the amount paid was not an ordinary and necessary business expense the net income should…
1Opinion of the Court
*371OPINION.
MoRRis:
The first assignment of error, the only one urged by petitioner, relates to the action of the respondent in increasing net income of the petitioner for the years 1918 and 1919 by $1,912.34 and $46,514.13, representing so-called donations made to the petitioner by private individuals and corporations located on its right of way for the building and installation of spur tracks and other facilities.
At the request of shippers located on property adjacent to the right of way of the petitioner, spur tracks and other facilities were installed under written agreements entered into…
2Cases cited1 opinion
- Edwards v. Cuba RailroadSupreme Court of the United States · 1925
3Cited by20 opinions
- Federated Dep't Stores, Inc. v. CommissionerUnited States Tax Court · 1968
- Michigan Cent. R.R. v. CommissionerUnited States Board of Tax Appeals · 1933
- Pittsburgh & Lake Erie R.R. v. CommissionerUnited States Board of Tax Appeals · 1933
- Chicago, R. I. & P. R. Co. v. CommissionerUnited States Board of Tax Appeals · 1928
- Colorado & S. Ry. v. CommissionerUnited States Board of Tax Appeals · 1937
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