Evangeline Gravel Co. v. Commissioner
United States Board of Tax Appeals
1. Where a corporation takes over, from an original lessee, a lease of gravel-bearing land, which gravel deposits have been discovered and examined by test borings made by the original lessee, held, such corporation is not entitled to depletion deductions on the basis of discovery value. 2. Evidence held insufficient to disturb respondent's determination as to the proper rate of deduction for depreciation of plant.
1Opinion of the Court
*103OPINION.
MaRquette:
Two questions are to be determined in this proceeding, viz: (1) The proper rate of depreciation to be allowed for the year 1921 with respect to five items of the petitioner’s assets, and (2) the proper rate of depletion deduction to be allowed for exhaustion of a gravel deposit for the same year.
The pleadings indicate a third question relating to the total loss of the useful life of a dam; but that is now conceded by the respondent in his brief.
The sections of the 192Í Revenue Act which are applicable here provide:
Sec. 234. (a) That in computing the net income of a…
2Cases cited1 opinion
- United States v. LudeySupreme Court of the United States · 1927
3Cited by5 opinions
- Burket v. CommissionerUnited States Board of Tax Appeals · 1930
- Darby-Lynde Co. v. CommissionerUnited States Board of Tax Appeals · 1930
- Evangeline Gravel Co. v. CommissionerUnited States Board of Tax Appeals · 1928
- Parker Gravel Co. v. CommissionerUnited States Board of Tax Appeals · 1930
- Rainbow Gasoline Corp. v. CommissionerUnited States Board of Tax Appeals · 1935