Bentley L. Holt and Bonnie J. Holt v. Commissioner of Internal Revenue

VAN OOSTERHOUT, Circuit Judge.

The issue, apparently one of first impression, presented by the • taxpayers’ petition for review of the decision of the Tax Court, reported at 44 T.C. 686, is whether a noncompetent Indian holding a grazing permit on tribal land is subject to federal income taxation upon profits allocable to such lands arising from a cattle operation financed under a statutory rehabilitation program for Indians. The Tax Court held such income to be taxable. We affirm.

The material facts are undisputed and are fully and fairly stated in the Tax Court opinion. The petitioners are…