Burton-Sutton Oil Co. v. Commissioner
United States Tax Court
1. Petitioner acquired an oil and gas lease by assignment and contracted with the assignor, among other things, that "After Grantee has met the underlying and overriding royalty obligations referred to in paragraph 2 hereof and has been reimbursed out of the proceeds of the oil and gas produced from all such costs and expenses of operating upon said property as defined below, Grantee shall account to and pay Grantor 50% of the remaining portion of said proceeds * * *."…
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1. Petitioner acquired an oil and gas lease by assignment and contracted with the assignor, among other things, that "After Grantee has met the underlying and overriding royalty obligations referred to in paragraph 2 hereof and has been reimbursed out of the proceeds of the oil and gas produced from all such costs and expenses of operating upon said property as defined below, Grantee shall account to and pay Grantor 50% of the remaining portion of said proceeds * * *." During the taxable years 1936, 1937, and 1938 it paid the grantor of the contract certain amounts representing the "50% of…
1Opinion of the Court
OPINION.
Black, Judge-.
We shall consider the issues in the order previously stated.
Issue No. 1. — Should the amounts of $17,406.19, $232,498.94, and $286,128.28 paid by petitioner to Gulf during the taxable years 1936. 1937, and 1938, respectively, be excluded from petitioner’s income? These amounts were paid pursuant to paragraph 3 of the February 18, 1933, contract between Sutton and Gulf, which contract petitioner acquired from Sutton on or about February 27, 1933. In Anderson v. Helvering, 310 U. S. 404, the Supreme Court said:
It is settled that the same basic issue determines both to whom…
2Cases cited14 opinions
- Welch v. HelveringSupreme Court of the United States · 1933
- Commissioner v. HeiningerSupreme Court of the United States · 1943
- North American Oil Consolidated v. BurnetSupreme Court of the United States · 1932
- Dixie Pine Products Co. v. CommissionerSupreme Court of the United States · 1944
- Anderson v. HelveringSupreme Court of the United States · 1940
9 more not listed; retrieve them via the Exa API.
3Cited by19 opinions
- Burton-Sutton Oil Co. v. CommissionerSupreme Court of the United States · 1946
- Standard Paving Co. v. CommissionerUnited States Tax Court · 1949
- Lehigh v. R. Co. v. CommissionerUnited States Tax Court · 1949
- Dravo Corporation v. The United StatesUnited States Court of Claims · 1965
- ACF-Brill Motors Co. v. CommissionerUnited States Tax Court · 1950
14 more not listed; retrieve them via the Exa API.