Chicago Junction Rys. & Union Stock Yards Co. v. United States

LITTLETON, Judge.

Plaintiff states the issue in controversy as two questions: (1) Whether the excess value of the materials and supplies turned back to the railroads by the Director General over the physical inventory taken over by the Director General in the sum of $73,902.30 constitutes taxable ineome; and (2) whether the allowance by the Director General of $102,-474.92 for shortage of units of materials and supplies not returned represents income or profit.

In its brief plaintiff assumes that the Commissioner of Internal Revenue increased the gross ineome by the sum of the two amounts…