Rainbow Gasoline Corp. v. Commissioner
United States Board of Tax Appeals
1. DEPLETION - CASINGHEAD GAS. - Where petitioner, who was the owner of casinghead gas contracts and engaged in the manufacture or extraction of gasoline from such gas, paid royalties equal to the full fair market value of the gas at the wells, held, there is no basis under section 114(b)(3), Revenue Act of 1928, for the computation of percentage depletion deductions, nor deductions based upon cost, since there is no proof petitioner paid anything for the contracts in excess…
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1. DEPLETION - CASINGHEAD GAS. - Where petitioner, who was the owner of casinghead gas contracts and engaged in the manufacture or extraction of gasoline from such gas, paid royalties equal to the full fair market value of the gas at the wells, held, there is no basis under section 114(b)(3), Revenue Act of 1928, for the computation of percentage depletion deductions, nor deductions based upon cost, since there is no proof petitioner paid anything for the contracts in excess of royalties. Helvering v. Twin Bell Oil Syndicate,293 U.S. 312; Signal Gasoline Corporation,30 B.T.A. 568; Greensboro…
1Opinion of the Court
RAINBOW GASOLINE CORPORATION, PETITIONER, v. COMMISSIONER OF INTERNAL REVENUE, RESPONDENT.
Rainbow Gasoline Corp. v. Commissioner
Docket Nos. 65152, 72365.
United States Board of Tax Appeals
31 B.T.A. 1050; 1935 BTA LEXIS 1033;
January 15, 1935, Promulgated
1. DEPLETION - CASINGHEAD GAS. - Where petitioner, who was the owner of casinghead gas contracts and engaged in the manufacture or extraction of gasoline from such gas, paid royalties equal to the full fair market value of the gas at the wells, held, there is no basis under section 114(b)(3), Revenue Act of 1928, for the computation of…
2Cases cited7 opinions
- Helvering v. Twin Bell Oil SyndicateSupreme Court of the United States · 1934
- Greensboro Gas Co. v. CommissionerUnited States Board of Tax Appeals · 1934
- Brea Canon Oil Co. v. CommissionerUnited States Board of Tax Appeals · 1934
- Rainbow Gasoline Corp. v. CommissionerUnited States Board of Tax Appeals · 1935
- Signal Gasoline Corp. v. CommissionerUnited States Board of Tax Appeals · 1934
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