North Carolina Granite Corp. v. Commissioner
United States Tax Court
1. Petitioner sold light-gray crushed granite for use as road material and for use as poultry grit. The average price received for sales to the poultry industry greatly exceeded the price received from roadbuilders. The price differential was occasioned by the unique value of petitioner's granite for use as poultry grit, and not by any nonmining processes.
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1. Petitioner sold light-gray crushed granite for use as road material and for use as poultry grit. The average price received for sales to the poultry industry greatly exceeded the price received from roadbuilders. The price differential was occasioned by the unique value of petitioner's granite for use as poultry grit, and not by any nonmining processes. Held, petitioner's "gross income from the property" for computing the deduction for percentage depletion on crushed granite sold for use as poultry grit is the actual receipts from sales reduced by the cost of shipping the grit in bags. 2.…
1Opinion of the Court
Forrester, Judge:
Respondent has determined deficiencies in petitioner’s income taxes for the years 1956,1957, and 1958 in the respective amounts of $29,962.33, $17,188.20, and $30,317.73. Petitioner in its amended petition claims overpayments for the same years of $58,564.10, $3,049.12, and $37,512.28, respectively.
The only issues remaining for decision are the following:(1) What was petitioner’s “gross income from the property” for computing percentage depletion with respect to crushed granite sold for use as poultry grit ?(2) Is petitioner, in calculating “taxable income from the property”…
2Cases cited17 opinions
- United States v. E. I. Du Pont De Nemours & Co.Supreme Court of the United States · 1956
- United States v. Cannelton Sewer Pipe Co.Supreme Court of the United States · 1960
- The Crosley Corporation v. United StatesCourt of Appeals for the Sixth Circuit · 1956
- Frank Scofield, Collector of Internal Revenue v. A. J. Lewis and Grace M. LewisCourt of Appeals for the Fifth Circuit · 1958
- Standard Lime and Cement Company (Formerly Known as the Standard Lime and Stone Company) v. The United StatesUnited States Court of Claims · 1964
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3Cited by39 opinions
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- B. C. Cook & Sons, Inc. v. CommissionerUnited States Tax Court · 1972
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