Hugo Black

“ In the Higgins case, decided on February 3, we affirmed the judgment of the same Circuit Court of Appeals that rendered the decision below. Higgins, an individual taxpayer whose activities did not vary materially from the activities of the taxpaying trusts in the case at bar, [3] was denied the deduction which petitioner here seeks. And sections 161, 162 of the Revenue Act of 1928 provide: 'The taxes imposed by this title (chapter) upon individuals shall apply to the income of estates or of any kind of property held in trust. ”

“ But we regard the Higgins decision as controlling despite petitioner's insistance that administrative practice has long permitted deduction of trustees' commissions. In view of the express Congressional command that the same method and basis of computation must be applied to trust income as to individual income, it is doubtful whether any administrative practice, no matter how clear or long existing, would warrant our applying one concept of carrying on business in the case of an individual and another concept in the case of a trust. ”

“ Compare Morrissey v. Commissioner, 296 U.S. 344, 356, 357, 56 S.Ct. 289, 294, 295, 80 L.Ed. 263; Von Baumbach v. Sargent Land Co., 242 U.S. 503, 515, 37 S.Ct. 201, 204, 61 L.Ed. 460; Zonne v. Minneapolis Syndicate, 220 U.S. 187, 31 S.Ct. ”