Roundup Coal Mining Co. v. Commissioner
United States Tax Court
1 and 2. In the year 1944 petitioner made expenditures for an air shaft, fan, and compressor. Held, these expenditures were incurred to maintain normal output because of the recession of the working faces of the mine and are allowable as ordinary and necessary business expenses. 3. In 1945 and 1946 petitioner constructed a rock slope.
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1 and 2. In the year 1944 petitioner made expenditures for an air shaft, fan, and compressor. Held, these expenditures were incurred to maintain normal output because of the recession of the working faces of the mine and are allowable as ordinary and necessary business expenses. 3. In 1945 and 1946 petitioner constructed a rock slope. Held, this expenditure had no relation to maintaining normal output and should be capitalized. 4. Petitioner claimed accelerated depreciation for the years 1943-1946, inclusive, on two Joy loaders purchased in 1942 and 1946. Petitioner operated on a double…
1Opinion of the Court
OPINION.
Withey, Judge:
The first two issues are whether the petitioner may deduct from gross income as ordinary and necessary expenses the cost of constructing an air shaft and the cost of a fan and compressor placed on top of the air shaft. The record shows that from 1908 to 1920 air was blown into petitioner’s mine by a fan placed at the mine entrance. In 1920 the mine had been driven under the Musselshell Elver. During that year another air shaft was constructed just across the river. An exhaust fan was installed atop this shaft. Air was blown in from the mine entrance and drawn out through…
2Cases cited11 opinions
- Chicot County Drainage District v. Baxter State BankSupreme Court of the United States · 1940
- United States v. AndersonSupreme Court of the United States · 1926
- Brown v. HelveringSupreme Court of the United States · 1934
- Brast v. Winding Gulf Colliery Co.Court of Appeals for the Fourth Circuit · 1938
- H. E. Harman Coal Corp. v. CommissionerUnited States Tax Court · 1951
6 more not listed; retrieve them via the Exa API.
3Cited by15 opinions
- Southern Pacific Transp. Co. v. CommissionerUnited States Tax Court · 1980
- United States v. Henderson Clay ProductsCourt of Appeals for the Fifth Circuit · 1963
- Avco Mfg. Corp. v. CommissionerUnited States Tax Court · 1956
- Kennecott Copper Corporation v. The United StatesUnited States Court of Claims · 1965
- United States Gypsum Co. v. United StatesDistrict Court, N.D. Illinois · 1962
10 more not listed; retrieve them via the Exa API.