Botany Worsted Mills v. United States

delivered -the opinion of the Court.

The Botany Worsted Mills, a New Jersey corporation engaged in the manufacture of woolen and worsted fabrics, made a return of its net income for the taxable year 1917 under the Revenue Act of 1916 1 and the War Revenue Act of 1917. 2 By § 12(a) of the Revenue Act it was provided that in ascertaining the net income of a corporation organized in the United States there should be deducted from its gross income all “ the ordinary and necessary expenses paid within the year in the maintenance and operation of its business and properties.” Under this provision…