Alsted Coal Co. v. Yoke

PARKER, Chief Judge.

This is an appeal by a taxpayer in an action against a Collector of Internal Revenue to recover income taxes paid in response to a deficiency assessment. The questions involved relate to the proper treatment for income tax purposes of expenditures made in opening up an abandoned coal mine and recovering by a process of retreat mining the pillar coal which ihad been left therein. Work began in January 1945 and the District Judge held that expenditures made from that time until June 15, 1945, should be charged to capital recoverable through depletion. Taxpayer contends that…