In the case United States v. Zerbey et al., 1925, the Supreme Court dealt with a dispute over income tax liability. The defendants, Mr. and Mrs. Zerbey, had sold their shares in a corporation and claimed that they were not liable for income taxes on the profits of this sale because it was capital gains rather than ordinary income. However, the government argued that under Section 202(a) of Revenue Act of 1921 which stated "gains derived from sales or dealings in property" are taxable as gross income; thus making them liable to pay taxes on these earnings. The court ruled in favor of the U.S Government stating that profit acquired from selling stock is considered taxable gross income according to federal law at that time regardless if it's viewed as capital gain or not by taxpayers themselves.

The dissenting opinion in the case of United States v. Zerbey et al., 1925, argued that the majority's decision to uphold a tax on imported goods was inconsistent with previous court rulings and violated principles of international law. The dissenters believed that the tax constituted an illegal tariff because it was imposed after the goods had already entered U.S. territory, thus violating their right to free importation under existing treaties. They also contended that this interpretation would lead to arbitrary and unpredictable taxation policies, undermining economic stability and fairness. Furthermore, they disagreed with the majority's view that Congress has unlimited power to impose taxes on imports; instead, they asserted such powers should be exercised within constitutional limits respecting individual rights and international obligations.