Crossett Timber & Development Co. v. Commissioner
United States Board of Tax Appeals
1. Petitioner received from its lessee a sum in settlement of a claim that the lessee had not produced from petitioner's lands one third of the lessee's total production of gas in accordance with the operating agreement. Held, the amount so received is not "income from the property" and not subject to percentage depletion allowance. 2. Petitioner paid to its lessee one half the cost of drilling four gas wells under an option to do so in the operating agreement.
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1. Petitioner received from its lessee a sum in settlement of a claim that the lessee had not produced from petitioner's lands one third of the lessee's total production of gas in accordance with the operating agreement. Held, the amount so received is not "income from the property" and not subject to percentage depletion allowance. 2. Petitioner paid to its lessee one half the cost of drilling four gas wells under an option to do so in the operating agreement. Upon electing so to participate petitioner relinquished all right of ownership in the wells and was granted additional royalties.…
1Opinion of the Court
*706OPINION.
Aeundell:
The respondent has determined deficiencies in income tax for the fiscal years ended November 30, 1929 and 1930, in the respective amounts of $4,040.36 and $2,230.24. Only a portion of the deficiency for each year is in controversy. All of the issues relate to sums received or paid out by petitioner in connection with gas-producing properties which it owned and which were leased to others. The proceedings were consolidated, and the facts stipulated.
The first issue is whether petitioner is entitled to a depletion deduction in respect of an amount of $20,173.57 received in 1929…
2Cases cited12 opinions
- Burnet v. HarmelSupreme Court of the United States · 1932
- Palmer v. BenderSupreme Court of the United States · 1932
- Murphy Oil Co. v. BurnetSupreme Court of the United States · 1932
- Bankers Pocahontas Coal Co. v. BurnetSupreme Court of the United States · 1932
- Ramsey v. CommissionerUnited States Board of Tax Appeals · 1932
7 more not listed; retrieve them via the Exa API.
3Cited by5 opinions
- Amherst Coal Company v. United StatesDistrict Court, S.D. West Virginia · 1969
- Perfumers Mfg. Corp. v. CommissionerUnited States Tax Court · 1959
- Crossett Timber & Development Co. v. CommissionerUnited States Board of Tax Appeals · 1934
- Perfumers Mfg. Corp. v. CommissionerUnited States Tax Court · 1959
- Robbins v. CommissionerUnited States Tax Court · 1967