Ayers Materials Co. v. Commissioner
United States Tax Court
Petitioner was engaged in the business of dredging clamshells from the bed of a lake. Some of the shells were sold at the dredges in the lake on a delivered basis, and the others were transported to storage yards on shore where they were stockpiled and subsequently sold f.o.b. yard. Held: Clamshells are customarily sold in the form of a crude mineral.
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Petitioner was engaged in the business of dredging clamshells from the bed of a lake. Some of the shells were sold at the dredges in the lake on a delivered basis, and the others were transported to storage yards on shore where they were stockpiled and subsequently sold f.o.b. yard. Held: Clamshells are customarily sold in the form of a crude mineral. The dredge-to-shore transportation, stockpiling, and loading for shipment to customers at the yards are not mining processes under sec. 613(c)(4)(C), as amended by the Public Debt and Tax Rate Extension Act of 1960. Held, further, in computing…
1Opinion of the Court
SteRrett, Judge:
With respect to his audit of petitioner’s Federal income tax return for the fiscal year ended May 81,1968, respondent made the following adjustments: (1) Petitioner’s depletion deduction for that year should be reduced by $40,729.39, thereby increasing the stated tax liability by $20,362.01, and (2) á prior refund of the 1968 tax paid in the amount of $32,310.11 by reason of the application of a net operating loss carryback from the fiscal year ended May 31, 1971, had been erroneously paid. Rased on these adjustments respondent determined a total deficiency in the amount of…
2Cases cited2 opinions
- United States v. Cannelton Sewer Pipe Co.Supreme Court of the United States · 1960
- Matagorda Shell Co. v. CommissionerUnited States Tax Court · 1958
3Cited by5 opinions
- Ideal Basic Industries, Inc. v. CommissionerUnited States Tax Court · 1984
- Carborundum Co. v. CommissionerUnited States Tax Court · 1978
- Ayers Materials Co. v. CommissionerUnited States Tax Court · 1974
- Carborundum Co. v. CommissionerUnited States Tax Court · 1978
- Ideal Basic Industries, Inc. v. CommissionerUnited States Tax Court · 1984