Cleveland R. Co. v. Commissioner
United States Board of Tax Appeals
1. The City of Cleveland, Ohio, by ordinance and regulations provided a scale of fare to be charged by petitioner predicated upon a net return to petitioner each year of an amount sufficient to pay a dividend of 6 per cent upon its capital stock.
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1. The City of Cleveland, Ohio, by ordinance and regulations provided a scale of fare to be charged by petitioner predicated upon a net return to petitioner each year of an amount sufficient to pay a dividend of 6 per cent upon its capital stock. The plan in substance was that if the net return to petitioner in any year exceeded a fixed amount, the rate of fare to be charged the public for the succeeding year was automatically reduced, and if the return in any year failed to equal the fixed return the fare was automatically increased for the succeeding year. The City of Cleveland did not own…
1Opinion of the Court
*318OPINION.
Littleton:
The principal issue in this proceeding is the determination of what constitutes the petitioner’s income in a taxable year. The Commissioner contends that the petitioner is a corporation subject to tax under the provisions of section 232 of the Revenue Acts of 1918 and 1921; that its taxable net income should be determined in the ordinary way, namely, by treating all receipts as gross income and deducting therefrom those deductions allowed by statute, and that the remainder should be taxed as income irrespective of whether the net income so determined exceeded or was less…
2Cases cited2 opinions
- Doyle v. Mitchell Brothers Co.Supreme Court of the United States · 1918
- Stratton's Independence, Ltd. v. HowbertSupreme Court of the United States · 1913
3Cited by7 opinions
- Boston E. R. Co. v. CommissionerUnited States Board of Tax Appeals · 1941
- Boston Elevated Railway Co. v. CommisssionerUnited States Board of Tax Appeals · 1941
- Effler v. CommissionerUnited States Board of Tax Appeals · 1934
- Cleveland R. Co. v. CommissionerUnited States Board of Tax Appeals · 1928
- Decatur Water Supply Co. v. CommissionerUnited States Board of Tax Appeals · 1936
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