Winters Coal Co., Inc., Petitioner-Appellant-Cross v. Commissioner of Internal Revenue, Respondent-Appellee-Cross

COLEMAN, Circuit Judge:

This is an appeal from an order of the United States Tax .Court denying petitioner’s request for a redetermination of a deficiency in its taxes for its taxable years ending March 31, 1965 and 1966, as assessed by the Commissioner of Internal Revenue. The primary issue is: Did the Tax Court err when it held that the taxpayer, Winters Coal Co., Inc., had no economic interest in the coal in place, mined under a lease with Alabama By-Products Corporation, which would have entitled Winters to a deduction for percentage depletion under Sections 611 and 613 of the Internal…