General Gas & Electric Corp. v. Commissioner, 306 U.S. 530 (1939)

U.S. Supreme Court

General Gas & Electric Corp. v. Commissioner, 306 U.S. 530 (1939) General Gas & Electric Corp. v. Commissioner

Nos. 492 and 493

Argued March 10, 1939

Decided April 3, 1939

306 U.S. 530

CERTIORARI TO THE CIRCUIT COURT OF APPEALS

FOR THE SECOND CIRCUIT

Syllabus

Decided upon the authority of Helvering v. Metropolitan Edison Co., ante, p. 306 U. S. 522.

98 F.2d 561 reversed.

Certiorari, 305 U.S. 593, to review the affirmance of a decision of the Board of Tax Appeals sustaining the determination of a deficiency in income tax.

MR. JUSTICE ROBERTS delivered the opinion of the Court.

These are companion cases to Nos. 486 and 487, ante, p. 306 U. S. 522, and involve the same question. The Circuit Court of Appeals held that conveyances by subsidiaries to the taxpayer, consummated under the Act of April 29, 1874 (15 P.S.Pa. § 595), did not constitute mergers so as to authorize the taxpayer to take a deduction for unamortized bond discount and expense in respect of bonds issued by the subsidiaries prior to the conveyance.

For reasons given in Nos. 486 and 487, the judgments must be

Reversed.