Legal Opinion

National Lead Co. v. Commissioner

United States Tax Court

Decided March 14, 1955No. Docket No. 37694PublishedCited by 9 opinions

1. Deduction -- Percentage Depletion -- Metal Mine -- Sec. 114 (b) (4). -- The petitioner's mine producing ilmenite concentrate was a metal mine within the meaning of section 114 (b) (4) although none of the titanium contained in the ilmenite concentrate was reduced to metal on a commercial basis. 2. Development Stage of an Open Mine -- Mining Costs -- Regs. 111, Sec. 29.23 (m)-15 (a). -- Costs of removing part of overburden and cutting benches in this case were not…

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1. Deduction -- Percentage Depletion -- Metal Mine -- Sec. 114 (b) (4). -- The petitioner's mine producing ilmenite concentrate was a metal mine within the meaning of section 114 (b) (4) although none of the titanium contained in the ilmenite concentrate was reduced to metal on a commercial basis. 2. Development Stage of an Open Mine -- Mining Costs -- Regs. 111, Sec. 29.23 (m)-15 (a). -- Costs of removing part of overburden and cutting benches in this case were not development costs which should be capitalized but were ordinary mining expenses or costs. 3. Deduction -- Depletion -- War…

1Opinion of the Court

OPINION.

Murdock, Judge: The Commissioner determined deficiencies as follows:

Excess profits

Tear Income tax tax

1941_$32,196.29 _

1942_ $1,426. 59

1943_ 2,416, 728.13

1944_ 91, 026. 81 1, 032, 315. 21

All facts stipulated by the parties are adopted as findings of fact.

Meted Mine Issue.

The most important issue in the case is whether the petitioner is entitled to percentage depletion under section 114 (b) (4) of the Internal Revenue Code based upon 15 per cent of the gross income from ilmenite obtained from its MacIntyre Mine. The petitioner purchased the MacIntyre Mine at Tahawus, New York, in 1941.…

2Cases cited10 opinions

  1. Charles Ilfeld Co. v. HernandezSupreme Court of the United States · 1934
  2. Earle, Collector of Internal Revenue v. W. J. Jones & Son, Inc. United States v. W. J. Jones & Son, IncCourt of Appeals for the Ninth Circuit · 1952
  3. McLaughlin v. Pacific Lumber Co.Supreme Court of the United States · 1934
  4. Bush Terminal Bldgs. Co. v. CommissionerUnited States Tax Court · 1946
  5. Arkansas-Oklahoma Gas Co. v. Commissioner of Internal Revenue (Two Cases)Court of Appeals for the Eighth Circuit · 1953

5 more not listed; retrieve them via the Exa API.

3Cited by9 opinions

  1. Southern Pacific Transp. Co. v. CommissionerUnited States Tax Court · 1980
  2. Spencer Quarries, Inc. v. CommissionerUnited States Tax Court · 1956
  3. Allen-Bradley Co. v. United StatesUnited States Court of Claims · 1956
  4. Silver Brand Clothes, Inc. v. CommissionerUnited States Tax Court · 1972
  5. National Lead Co. v. CommissionerUnited States Tax Court · 1955

4 more not listed; retrieve them via the Exa API.

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