UNITED STATES SUPREME COURT DECISIONS ON-LINE

Under the Revenue Act of 1938, which provides that the basis on which depreciation shall be "allowed" as a deduction in computing net income is the cost of the property with proper adjustments for depreciation to the extent "allowed (but not less than the amount allowable)" under that and prior income tax laws, excessive amount claimed by the taxpayer for depreciation in his returns for earlier years were properly deducted from cost in readjusting the depreciation basis of the property in question, although, in those years, no tax benefit resulted to the taxpayer from the use of depreciation as a deduction. P. 319 U. S. 526.

132 F.2d 909 affirmed.

Certiorari, 318 U.S. 754, to review the reversal of a ruling of the Tax Court against a deficiency assessment of income tax. clubjuris

Page 319 U. S. 524