United States Supreme Court Cases & Opinions

U.S. Supreme Court

Hays v. Gauley Mountain Coal Co., 247 U.S. 189 (1918)

Hays v. Gauley Mountain Coal Company

No. 327

Argued March 4, 5, 6, 1918

Decided May 20, 1918

247 U.S. 189

Syllabus

The Corporation Tax Act of August 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.

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. Dole v. Mitchell Brothers Co., ante, 247 U. S. 179.

230 F.1d 0, reversed.

The case is stated in the opinion.

Page 247 U. S. 190