Document: 352 U.S. 306 77 S.Ct. 343 1 L.Ed.2d 347 The UNITED STATES, Petitioner,v.The ALLEN-BRADLEY COMPANY. No. 78. Argued Dec. 13, 1956. Decided Jan. 22, 1957. Mr. Hilbert P. Zarky, Washington, D.C., for the petitioner. Harvey W. Peters, Milwaukee, Wis., respondent. Justice BLACK delivered opinion of Court. In 1940 this country embarked on greatest program defense preparedness in its history. Such an undertaking called a vast expansion nation's industrial capacity. New and improved facilities were desperately needed, not only production guns, planes other obvious weapons war, but also innumerable items that are essential to prosecution large-scale conflict. This unprecedented demanded full immediate cooperation everyone who could lend assistance. While Government attempted secure necessary by building them itself or extending emergency construction loans private business, it soon appeared these methods would be adequate meet needs defense. Private capital was assistance task. However business exhibited reluctance build new war plants because widespread fears such become wholly useless when had passed. response fears, Congress acted lessen financial risks involved facilities. Among things amended 1939 Internal Revenue Code adding §§ 23(t) 124,1 which allowed write off cost as deduction against taxable income within period five years less, regardless actual economic life facilities, provided they been certified proper executive agency 'necessary interest national defense.' accelerated amortization privilege generally enabled those businesses receiving reduce their federal taxes with net result large part costs was, at least temporarily, borne Federal through reduction tax receipts. 2 case involves question interpretation § 124(f), vital provisions. facts dispute. During Second World War respondent Allen-Bradley Company produced radio parts materials needed carry war. These products critically short supply request government procurement officers repeatedly increased order boost output. connection expansions applied Production Board, then certifying authority, certificates improvements Board issued nine different necessity dispute here three certificates. Each stated covered up specified percentage total cost. 'partial certification' made pursuant policy adopted 1943 certify reasonably expected have peacetime utility, extent attributable wartime increase prices. Respondent accepted partial certifications, proceeded returns 1944 1945 deducted amount based Board. 3 1953 first raised claim is basis suit no authority facility. concedes discretion refuse issue any certificate all, contends once decided facility function end attempt limit certification nullity. Therefore, contends, entitled accelerate just On contentions filed present action Court Claims recover alleged overpayment taxes. respondent's arguments rendered judgment it. 134 Ct.Cl. 800. We granted certiorari, 351 981, 76 1049, conflict between decision Appeals Circuit Commissioner v. National Lead Co., Cir., 230 F.2d 161. 4 language crucial section 124(f) ambiguous. It specifies determining available special privilege: 5 '(1) There shall included so much * properly after December 31, 1939, (the Board) has during *.' 6 argues phrase 'only amount' refers simply 1939. hand qualifying incurred portion believe either possible; neither compelled. But responsible administration Act consistently interpreted authorizing defense.2 7 legislative history shows intended administrators broad exercising power. faced extremely complicated problems attempting accomplish desired objective face constant drastic changes conditions. And capacity became more carefully balanced need proposed loss revenue caused before issuing certificate. power gave flexible instrument balance conflicting objectives. 8 appears kept close supervision over privilege. For example, 124 times war;3 two amendments altered manner did affect decisive controversy. restrain from covering although seems apparent committees aware authorities permitting certifications. fact Senate 'watch-dog' committee established continually study investigate including '* benefits accruing contractors respect purposes taxation otherwise *.'4 9 Perhaps construed differently. not. Construed served purpose. contributed materially phenomenal our successful Certificates general, particular—apparently without substantial objection. technique employed one drafted certain how work practice. They foresee many arise sweeping used encourage industry producing useful all-out effort. Therefore strange provision loosely drawn and, some respects, imprecise. circumstances if course leaving wide light day-to-day grind experience. lends flexibility. 10 hold under certificates, case, must reversed. ordered. 11 Reversed. 12 HARLAN, concurring. 13 Both terms statute, courts expertise matters Tax sustained taxpayer's position,1 leave me doubtful whether, statutory provisions question,2 right finds ambiguity but, resolving has, does little than point out interfere claimed 14 However, my view scope Board's powers reached because, reasons given Judge Lumbard his unanimous 161, I think clear cannot maintain action. join Court's decision. 54 Stat. 998—1003, amended, 26 U.S.C. 23(t), 124, U.S.C.A. 124. See Department Regulations, Issuance Necessity Certificates, Fed.Reg. 4233 (1942); 16964 (1943). compare Treas.Reg. 111, 29.124—6. 55 4, 757, 56 50, 850 59 525. S.Res. 71, 77th Cong., 1st Sess. (87 Cong.Rec. 1615), 6, 78th (89 331). Co. Revenue, 23 T.C. 988; United States, 124(f)(1), quotes, read context 124(e)(1) 124(f)(3), 124(e)(1), (f)(3). Together sections provide: 124(e)(1). 'As section, term 'emergency facility' means facility, land, building, machinery, equipment, thereof, construction, reconstruction, erection, installation, acquisition completed subsection (f) 124(f). 'In determining, (a) adjusted facility— constituting Secretary Navy period, regulations may prescribed time Navy, approval President.' 124(f)(3). event notwithstanding year— '(C) unless thereof paragraph (1) (i) prior filing return year, making election take deduction, (ii) 1, 1941, whichever later 17, 1943, transferred President

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