Hays v. Gauley Mountain Coal Co., 247 U.S. 189 (1918)
U.S. Supreme CourtHays v. Gauley Mountain Coal Co., 247 U.S. 189 (1918)
Hays v. Gauley Mountain Coal Company
Argued March 4, 5, 6, 1918
Decided May 20, 1918
247 U.S. 189
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. 110, reversed.
The case is stated in the opinion.