Hays v. Gauley Mountain Coal Co.

Citations

• 247 U.S. 189
• 38 S. Ct. 470
• 62 L. Ed. 1061
• 1918 U.S. LEXIS 1969

Syllabus

<p>The Corporation Tax Act ofjtugust 5,1909, c. 6,36 Stat. 11,112, § 38, measures'the tax by income, received during the tax year without reference to when it accrued, provided it accrued after the act became effective. Gray v. Darlington, 15 Wall. 63, distinguished.</p> <p>A coal company bought shares of another coal company before, and sold them at an advance after, the Corporation Tax Act became effective. Held: (1) That interest should not be added to the investment as a part, of the cost; (2) that so much, and only so much, of the advance as could be deemed to have accrued since December 31, 1908, was part of the company’s “gross income,.” within the act. Doyle v. Mitchell Brothers Co., ante, 179.</p>