Kohinoor Coal Co. v. Commissioner

KALODNER, Circuit Judge.

This appeal is taken from the -decision of the Tax Cour-t.

*881The question presented is whether the taxpayer i-s entitled to an allowance for percentage depletion with respect to its operations in the extraction and processing of coal from oulm or refuse ¡banks which it leased for that purpose from the owner and operator of a coal mine. The claim for depletion allowance is based upon Section 23(m)1; Section 114(b) (4) (A) and (B) as amended,2 of the Internal Revenue Code; and Section 29.23(m)-,l of Treasury Regulations 111.3

The facts, which are not in dispute, may be…