Miss Helen R. Carloss, Sp. Asst. to Atty. Gen., for Commissioner of Internal Revenue.
Mr. Maurice Bower Saul, of Philadelphia, Pa., for respondent Metropolitan Edison Co. [306 U.S. 522, 523] Mr. Edwin M. Sturtevant, of Baltimore, Md., for respondent Pennsylvania Water & Power Co.
Mr. Justice ROBERTS delivered the opinion of the Court.
These cases present the question whether, under the Revenue Acts of 1926 and 1928,1 a Pennsylvania corporation may deduct unamortized bond discount and expense in connection with redemption of the bonds of a subsidiary, all of whose assets it had previously acquired pursuant to local law. The court below answered this question in the affirmative. 2 By reason of a direct conflict of decision we granted the writ of certiorari.