The Elmhurst Cemetery Company of Joliet v. Commissioner of Internal Revenue case in 1936 revolved around the issue of whether or not a cemetery company could claim tax-exempt status under federal law. The Supreme Court ruled that the Elmhurst Cemetery Company was not entitled to an exemption from federal income taxes, despite its argument that it should be considered a non-profit organization because it used all profits for maintenance and improvements on the property. The court found that while cemeteries can serve public functions, they are not charitable institutions per se and thus do not automatically qualify for tax exemptions typically granted to such organizations. Furthermore, the court noted that even if all profits were reinvested into maintaining and improving the cemetery grounds as claimed by Elmhurst, this did not change its fundamental nature as a business operation engaged in selling burial plots for profit.

The dissenting opinion in the case of Elmhurst Cemetery Company of Joliet v. Commissioner of Internal Revenue argued that the majority's decision was inconsistent with previous rulings and interpretations regarding tax law. The dissenters believed that funds set aside for future maintenance costs should not be considered as income, but rather a liability, since they are earmarked for specific expenses to maintain the cemetery in perpetuity. They contended this interpretation is consistent with both legal precedent and common business practices where such allocations are often treated as liabilities rather than profit or gain. Therefore, these justices disagreed with taxing these funds under income tax laws.