Detroit Edison Co. v. Commissioner, 319 U.S. 98 (1943)

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Detroit Edison Co. v. Commissioner of Internal Revenue


No. 675


Argued April 13, 1943
Decided May 3, 1943
319 U.S. 98

CERTIORARI TO THE CIRCUIT COURT OF APPEALS
FOR THE SIXTH CIRCUIT

Syllabus

1. Under § 23(1) of the Revenue Act of 1936, an electric power company is not entitled to a deduction on account of depreciation in respect of the cost of extensions of its facilities to the extent that such cost was borne by customer whose payments to the company therefor were not refunded nor refundable. P. 102.

2. Section 113(a)(2) and (8)(B) of the Revenue Act of 1936 are inapplicable, since the customers’ payment in question were neither "gifts" nor "contributions" to the company. P. 102.

131 P.2d 619 affirmed.

Certiorari, 318 U.S. 749, to review the affirmance of a decision of the Board of Tax Appeals, 45 B.T.A. 358, which sustained the Commissioner’s determination of a deficiency in income tax.