Iowa Limestone Co. v. Commissioner
United States Tax Court
During the taxable years involved petitioner was engaged in quarrying and processing limestone. 1. Held, that the first commercially marketable product produced by petitioner was chemical grade limestone within the meaning of section 114 (b) (4) (A) (iii), I. R. C. 1939, thereby entitling petitioner to compute its percentage depletion deduction at the statutory rate of 15 per cent. 2. Held, further, that the fine grinding or pulverizing and the heating to reduce the moisture…
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During the taxable years involved petitioner was engaged in quarrying and processing limestone. 1. Held, that the first commercially marketable product produced by petitioner was chemical grade limestone within the meaning of section 114 (b) (4) (A) (iii), I. R. C. 1939, thereby entitling petitioner to compute its percentage depletion deduction at the statutory rate of 15 per cent. 2. Held, further, that the fine grinding or pulverizing and the heating to reduce the moisture content applied by petitioner to produce its product were ordinary treatment processes.
1Opinion of the Court
OPINION.
LeMikg, Judge:
Petitioner is engaged in the quarrying and processing of limestone, and computed its allowance for depletion on the basis of income derived from the sale of its finished product.
The respondent relying primarily on the decision in Dragon Cement Co. v. United States, 144 F. Supp. 188, contends that all the processes beyond the secondary crushing in the hammermills were not ordinary treatment processes within the meaning of section 114 (b) (4) (B) of the Internal Revenue Code of 1939. Petitioner contends that the additional processes of fine grinding or pulverization and…
2Cases cited9 opinions
- United States v. Cherokee Brick & Tile CompanyCourt of Appeals for the Fifth Circuit · 1955
- Virginian Limestone Corp. v. CommissionerUnited States Tax Court · 1956
- Spencer Quarries, Inc. v. CommissionerUnited States Tax Court · 1956
- Dragon Cement Company, Inc. v. United StatesCourt of Appeals for the First Circuit · 1957
- United States v. Merry Brothers Brick and Tile Company, United States of America v. Reliance Clay Products CompanyCourt of Appeals for the Fifth Circuit · 1957
4 more not listed; retrieve them via the Exa API.
3Cited by16 opinions
- Alabama By-Products Corporation v. George D. Patterson, District Director of Internal RevenueCourt of Appeals for the Fifth Circuit · 1958
- United States v. Henderson Clay ProductsCourt of Appeals for the Fifth Circuit · 1963
- Cannelton Sewer Pipe Company v. United StatesCourt of Appeals for the Seventh Circuit · 1959
- Commissioner of Internal Revenue v. Iowa Limestone CompanyCourt of Appeals for the Eighth Circuit · 1959
- Halquist v. CommissionerUnited States Tax Court · 1959
11 more not listed; retrieve them via the Exa API.