Case ID: bta_9/html/1193-01.html
Source: Caselaw Access Project
Author: {"author": "Siefkin:", "license": "Public Domain", "url": "https://static.case.law/"}
Date Created: 2024-08-24T03:29:51.129683

Atlantic Coast Line Railroad Co., Petitioner, v. Commissioner of Internal Revenue, Respondent.
    Docket No. 10983.
    Promulgated January 12, 1928.
    
      M. O. Elliott, Esq., for the petitioner.
    
      M. N. Fisher, Esq., for the respondent.
   Siefkin:

This proceeding is for the redetermination of a deficiency in income taxes for 1919 asserted in the amount of $41,668.73, of which $9,612.29 is in controversy. Of such deficiency, $8,209.86 consists of the 2 per cent tax paid by the Director General of Railroads during the period of Federal control under a contract between the Director General and petitioner upon net taxable income of $410,-493.27 under facts differing in no substantial respect except as to the amounts involved from the facts considered by us in New York, Ontario & Western Railroad Co. 1 B. T. A. 1172, and Atlantic Coast Line Railroad Co., 2 B. T. A. 892, where we held the railroads not chargeable with the amount borne by the Director General. Of the contested amount, $1,381.12 results from the inclusion in income of petitioner and the taxation at 10 per cent of $13,811.20 on account of sidetracks paid for by customers of petitioner and donated to petitioner under General Order No. 15 of the United States Railroad Administration. Under a state of facts not distinguishable in any essential from the facts in this proceeding we have held that such amounts were not taxable income. Great Northern Railway Co., 8 B. T. A. 225. Twenty-one dollars and thirty-one cents represents a correction in computation.

The parties have agreed that if these two issues are determined in favor of the petitioner, the amount of the deficiency for 1919 is $32,056.44. We affirm the principles decided in the cases cited. The deficiency for 1919 is $32,056.44. An order to that effect will be entered.

Judgment will be entered for the respondent for a deficiency of $S%,056.1¡J¡. for 1919.