In the case of East Ohio Gas Co. v. Tax Commission of Ohio, the Supreme Court ruled in favor of the state tax commission. The gas company had argued that its interstate business should not be subjected to taxation by individual states, as it was protected under the Commerce Clause which gives Congress power over interstate commerce. However, this argument was rejected by Justice Holmes who stated that while a state cannot tax goods in transit across its territory from one state to another, it can impose taxes on businesses operating within its borders even if they are involved in interstate commerce. Therefore, he concluded that there is no constitutional barrier preventing a state from imposing such taxes and upheld Ohio's right to do so.

In the dissenting opinion for East Ohio Gas Co. v. Tax Commission of Ohio, it was argued that the majority's decision to uphold a tax on gas companies based on gross receipts violated both state and federal constitutions. The dissenting justices believed that this form of taxation unfairly targeted out-of-state corporations, creating an undue burden and violating principles of interstate commerce. They also contended that such taxes should be levied based on net income rather than gross receipts, as the latter could lead to instances where a company is taxed despite operating at a loss. Furthermore, they disagreed with the majority's interpretation of what constituted "property" under tax law; in their view, intangible assets like contracts or business relationships should not be considered taxable property.