William O. Faylor and Kathryn Faylor v. Commissioner of Internal Revenue

The decisive question here, as in Lehigh Portland Cement Co. v. United States, 3 Cir., 334 F.2d 469, a similar ease decided today by this court, is whether the mineral produced by the taxpayers’ quarry during the taxable year 1953 qualifies for a 15 per cent depletion allowance as “chemical grade limestone”, or merely qualifies as “calcium carbonates” for which a 10 per cent depletion allowance is authorized. See section 114(b) (4) (A) of the 1939 Internal Revenue Code. The Tax Court applied the 10 per cent depletion rate and the taxpayers have appealed.

The taxpayers’ limestone was suitable…