Hardwick Realty Co. v. Commissioner of Internal Revenue

(after stating the facts as above). The taxing statute involved in this controversy is the Revenue Act of 1918 (40 Stat. 1057). By section 230 corporations axe taxed upon their “net income”; by section 232 this term is declared to mean the gross income as defined in section 233, less the deductions allowed by section 234; by section 233 the definition of “gross income” is referred back to section 213, and is found to include “gains, profits, and income derived from * * * sales * * * ”; and by section 202 is provided the basis for determining such gains, as follows:

“See. 202(a) That for the…