
    Appeal of EMMONS COAL MINING CO.
    Docket No. 4137.
    Submitted November 16, 1925.
    Decided April 19, 1926.
    
      H. E. Toulhrod for the taxpayer.
    
      W. F. Gibbs, Esq., for the Commissioner.
    Before Maequette, Moeeis, GreeN, and Love.
    This is an appeal from the determination of a deficiency in income tax for the calendar year 1920, in the amount of $3,649.57. The taxpayer alleges error on the part of the Commissioner in disallowing certain expenditures as ordinary and necessary business expenses.
    FINDINGS OF FACT.
    The taxpayer is a Pennsylvania corporation and engaged in the business of operating coal mines. Affiliated with the taxpayer for the purpose of a consolidated tax return were the Emmons Coal Mining Co. of West Virginia, the Marion Center Coal Mining Co., and the Fallen Timber Coal Co.
    .During the year 1920, the taxpayer and the affiliated corporations expended the following amounts for storage-battery locomotives, mine cars, and a cutting machine:
    Emmons Coal Hilling Co. of West Virginia, storage battery locomotive _$5,412. 00
    Fallen Timber Coal Co., cutting machine_ 3, 500. 00
    Marion Center Coal Mining Co.:
    Storage-battery locomotive- 4, 398.11
    Storage-battery locomotive_ 4, 000. 00
    Mine cars_ 2,125. 00
    A statement of the tonnage produced for the years 1918, 1919, and j.920, by the said companies, as shown upon their books, is as follows:
    
      
    
    The Commissioner refused to allow said expenditures as ordinary and necessary business expenses.
   OPINION.

Love:

The above expenditures were proper charges to capital account and not deductible as ordinary and necessary expenses. Appeal of Winifrede Goal Co., 1 B. T. A. 566; Appeal of Union Collienes Co., 3 B. T. A. 540; Appeal of Kirk Coal Co., 3 B. T. A. 755.

The deficiency is $3,64-9.57 for the calendar year 19W. Order will 5e entered accordingly.  