Little Miami & Columbus & Xenia Railroad v. United States

Citations

• 108 U.S. 277
• 2 S. Ct. 627
• 27 L. Ed. 724
• 1883 U.S. LEXIS 1035
• 3 A.F.T.R. (P-H) 2456

Syllabus

<p>Income Tax — Internal Revenue — Practice—Railroads.</p> <p>The provisions in the act of June 30th, 1864,13 Stat. 284, eh. 173, § 122 ; and in the act of June 13th, 1866, 14 Stat. 139, eh. 184, § 9, that the profits of a railroad company carried to the account of any fund, or used for construction shall be subject to and pay a tax, do not apply to earnings by a railroad company which are used for construction or carried to a fund, unless; on a rest made and balance struck for the period for which the tax is demanded, the operations of the company show a profit. In this respect the rule in the statute differs from that which it lays down in respect to earnings used to pay interest or dividends, which were taxable whether there were actual profits or not.</p> <p>In a suit, to recover taxes alleged to be in arrear on the profits of a railroad company carried to a fund or expended in construction, the burden of proof is on the United States to show that the company earned such profits, and that losses shown by the company were not suffered during the period.</p> <p>When the law is settled in the court above, but the findings show uncertainty as to the facts on which judgment is to be based, the cause should be remanded for such further proceedings to be had in the inferior court as the justice of the case may require.</p>