Ruston v. Commissioner
United States Tax Court
1. The holder of mining rights acquired by lease entered into a contract with a coal strip-mining contractor whereby the latter agreed to strip-mine all strippable coal on the property. The contract gave the stripper the exclusive right to strip-mine the coal and required it to perform certain duties which had been imposed upon the holder of the mining rights by the terms of its leases.
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1. The holder of mining rights acquired by lease entered into a contract with a coal strip-mining contractor whereby the latter agreed to strip-mine all strippable coal on the property. The contract gave the stripper the exclusive right to strip-mine the coal and required it to perform certain duties which had been imposed upon the holder of the mining rights by the terms of its leases. In consideration the coal stripper was to receive 83 per cent of the net selling price of the coal it mined. Held, that by contract the holder of the mining rights transferred to the coal stripper a depletable…
1Opinion of the Court
OPINION.
Issue No. 1.
Hill, Judge:
This issue concerns the question whether the Nuri Smokeless Coal Company, a partnership owned and operated by petitioners James Huston and E. W. Huston, when it entered into a contract with petitioner W. A. Wilson & Sons Construction Co., Inc., whereby the latter was to strip-mine coal from the Hustons’ leased property, t?Ms|erred to W; A, Wilson & Sons Construction Co. a depletable interest in the coal. Applicable statutory law is contained in sections 23 (m) and 114 (b) (4) of the Internal Revenue Code.3 This language is necessarily very broad and in…
2Cases cited14 opinions
- Burnet v. HarmelSupreme Court of the United States · 1932
- Palmer v. BenderSupreme Court of the United States · 1932
- Burton-Sutton Oil Co. v. CommissionerSupreme Court of the United States · 1946
- Anderson v. HelveringSupreme Court of the United States · 1940
- Lynch v. Alworth-Stephens Co.Supreme Court of the United States · 1925
9 more not listed; retrieve them via the Exa API.
3Cited by29 opinions
- Commissioner of Internal Revenue v. The Mammoth Coal CompanyCourt of Appeals for the Third Circuit · 1956
- Emil Usibelli and Rose P. Usibelli v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1955
- McCall v. CommissionerUnited States Tax Court · 1962
- Virginia B. Coal Co. v. CommissionerUnited States Tax Court · 1956
- Fink v. CommissionerUnited States Tax Court · 1958
24 more not listed; retrieve them via the Exa API.