Law Commons^™

Administrative Law - Taxation - Power Of Board To Adopt Rules And Regulations - Inflexibility Of Prior Ruling By Reenactment Of Statute Without Change, William F. Anderson

Michigan Law Review

The respondent oil company in computing its net income for the years 1929-1930 for the purpose of applying the depletion deduction provisions of the Revenue Act of 1928 refused to deduct certain development expenditures, although it had deducted those development expenditures in computing its taxable net income for these years. Under the rule-making power of section 23 (1) of that act, the commissioner defined "net income of the taxpayer" as used in section 114 (b)(3) as meaning gross income from the sale of gas and oil less certain deductions, including development expenses (if the taxpayer had elected to deduct development …