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SUPREME COURT OF THE UNITED STATES No. 445.—October Term, 1949. On Writ of Certiorari to the United States Court of Appeals for the Eighth Circuit. [May 15, 1950.] M r. Justice Clark delivered the opinion of the Court. This proceeding seeks redetermination of petitioner’s excess profits tax. computed by the invested capital method, for the fiscal years ended 1942 and 1943.' The issues arise from the payment of cash and the transfer of other property to petitioner by certain community groups as an inducement to the location or expansion of petitioner’s factory operations in the communities. Petitioner claimed, and the Commissioner disallowed, (1) a deduction from gross income for depreciation on the property contributed and on the full cost of property acquired in part with contributed cash or equivalent funds, and (2) inclusion of the total value of the contributions in petitioner’s equity invested capital. The Fax Court reversed the Commissioner’s ruling impart. 10T. C. 291 Jirown bhoe U ompany, Petitioner, inc. v. Commissioner of Internal T4 p v p i i u p 1 The tax in controversy is imposed under the excess profits tax provisions of the Jfiecdnd Revenue Act oi I*140, ;>4 amended; I. R. C. § 710 ct seq. The tax is levied u pSloant .e x0c1e4s,s 9p7r5o,f iatss net income remaining after allowance of a §5000 specific exemption apnerdm iatnt eedx ccesosm ppurtoaftitiso nc reodfi tt hree pcrreesdietn tionng tah en obramsiasl epirtohfeirt . ol Tahvee rAacgte income over a base period or of ‘'invested capital,” which includes eexqcueistsy pirnovfeistst edt axc appritoavli siaonnds 5of0 tpheer cAendt woef reb orrerpoewaeledd t eian p it1 a04h5 . ThoeO Stat. 556, 508.