Bayou Verret Land Co. v. Commissioner

GODBOLD, Circuit Judge:

Consolidated for review in this court are five appeals from similarly consolidated decisions of the Tax Court on petitions to redetermine the Commissioner’s assessments of deficiencies in the tax liabilities of a number of related Louisiana taxpayers.1 We affirm in part and reverse and remand in part.

I. Bayou Verret and Churchill Farms During 1959-64 Bayou Yerret Land Co., Inc., and Churchill Farms, Inc., derived their income almost solely from oil and gas leases covering portions of Louisiana land owned by them, approximately 1271 acres and 4200 acres, respectively.…