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Continental Tie & Lumber Co. v. United States, 286 U.S. 290 (1932)

Continental Tie & Lumber Co. v. United States

No. 50

Argued April 14, 1932

Decided May 16, 1932

286 U.S. 290


1. The payments provided by § 204 of the Transportation Act to railroads which were not under federal control but which suffered deficits of operating income in that period were intended as reimbursements for losses consequential on government operation of other railroads; they are neither subsidies nor bonuses, but are income within the intent of the Sixteenth Amendment and § 213 of the Revenue Act of 1918. P. 286 U. S. 293.

2. The right to such an award was fixed by the passage of the Transportation Act, 192; the function of the Interstate Commerce Commission in ascertaining the amount is ministerial. P. 286 U. S. 295.

3. An award under § 204 held taxable as income for 1920, although it was not determined by the Commission and paid until 1923, since the railroad kept its books upon the accrual basis and had data, in 1920, from which it could have made a reasonably approximate estimate in its tax return for that year, subject to future adjustment by amended return, claim for refund, or additional

Page 286 U. S. 291

assessment, as the final award of the Commission might warrant. P. 286 U. S. 295.

72 Ct.Cls. 595, 52 F.2d 1045, affirmed.

Certiorari, 284 U. S; 615, to review the denial of a claim based on an alleged overpayment of income tax.

Page 286 U. S. 292

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