United States v. Cherokee Brick & Tile Company

HOLMES, Circuit Judge.

This appeal is by the United States from a judgment in favor of the Cherokee Brick and Tile Company, which is engaged in mining common brick and tile clay. The taxpayer uses the raw clay to produce burnt brick, which it sells as the finished product. The judgment was entered pursuant to an opinion of the district court, which is reported in 122 F.Supp. 59, to which reference is made for a more detailed statement of the issues of law and fact presented on this record. In brief, the question is should the taxpayer’s gross income from mining be permitted to include…