Morrisdale Coal Mining Co. v. Commissioner
United States Tax Court
1. During the taxable years, petitioner had independent contractors strip-mine fringe coal on lands under lease to petitioner.
Read the full summary
1. During the taxable years, petitioner had independent contractors strip-mine fringe coal on lands under lease to petitioner. Held, under all the facts, the independent contractors did not acquire an economic interest under their contracts; and respondent erred in computing percentage depletion by reducing petitioner's gross income by an amount equal to that paid the independent strip-mining contractors. 2. During 1946, petitioner, on a calendar year, accrual basis, deducted from its gross income the amount paid its employees during 1946 as vacation pay for the period June 1, 1945, through…
1Opinion of the Court
Rice, Judge:
The respondent determined deficiencies in excess profits tax for the taxable years 1944 and 1945 in the amounts of $60,498.21 and $47,314.33, respectively, and a deficiency in income tax for the taxable year 1946 in the amount of $4,969.81. Petitioner claims relief from excess profits tax liability for the years 1944 and 1945 under section 721 of the Internal Bevenue Code, which relief respondent has denied.
The issues to be decided are: (1) whether petitioner should exclude from “gross income from the property,” in computing its percentage depletion deduction amounts paid to…
2Cases cited9 opinions
- Commissioner v. SunnenSupreme Court of the United States · 1948
- Palmer v. BenderSupreme Court of the United States · 1932
- Tennessee Consol. Coal Co. v. CommissionerUnited States Tax Court · 1950
- Hudson Engineering Corporation v. Commissioner of Internal Revenue. Commissioner of Internal Revenue v. HudsonCourt of Appeals for the Fifth Circuit · 1950
- Morrisdale Coal Mining Co. v. CommissionerUnited States Tax Court · 1949
4 more not listed; retrieve them via the Exa API.
3Cited by30 opinions
- Patchen v. CommissionerUnited States Tax Court · 1956
- Union Pacific Railroad v. United StatesUnited States Court of Claims · 1975
- 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
- Virginia B. Coal Co. v. CommissionerUnited States Tax Court · 1956
25 more not listed; retrieve them via the Exa API.