Grand River Gravel Co. v. Commissioner
United States Board of Tax Appeals
1. Depreciation of petitioner's plant and operating equipment should be computed on a unit-of-production basis. 2. Depletion of a gravel deposit based on discovery value is disallowed. Parker Gravel Co.,21 B.T.A. 51, followed.
1Opinion of the Court
*1125OPINION.
Lansdon:
The petitioner claims an additional allowance for depletion based on a discovery value of $49,326.60. We have heretofore decided, in Parker Gravel Co., 21 B. T. A. 51, that a gravel pit or deposit is not a “ mine ” within the meaning of that word as used in section 204 (c) (1) of the Revenue Act of 1926, and may not be the subject matter of a deduction for depletion based on discovery value. Upon authority of our decision in that proceeding the deduction claimed must be disallowed.
Furthermore, the petitioner has failed to establish either that it discovered the gravel deposit…
2Cited by3 opinions
- Grand River Gravel Co. v. CommissionerUnited States Board of Tax Appeals · 1931
- Hall v. CommissionerUnited States Tax Court · 1949
- Vogue Silk Hosiery Co. v. CommissionerUnited States Board of Tax Appeals · 1932