Great Northern Ry. Co. v. Commissioner of Internal Revenue

STONE, Circuit Judge.

This is a petition for review of a determination of a corporate income tax deficiency of appellant for the year 1917. The dispute is concerning the propriety of the ruling by the Board of Tax Appeals that two items should not be regarded as deductible operating expenses for that year.

I. The first and principal item is $422,-677.80. This item is for transportation of men and material used in connection with betterments and additions going into capital account. Neither this labor nor material has anything to do with repairs, replacements, and maintenance. The labor and…