Montreal Mining Co. v. Commissioner
United States Board of Tax Appeals
In computing petitioner's net income for percentage depletion, under the provisions of section 114(b)(4) of the Revenue Act of 1934, amounts paid in settlement of silicosis claims must be deducted from its gross income. Helvering v. Wilshire Oil Co.,308 U.S. 90.
1Opinion of the Court
Van Fossan :
In the single issue before us the petitioner contends that the respondent erred in deducting from its -gross income from the property amounts expended in the payment of silicosis claims, in order to arrive at net income therefor in computing percentage depletion under the provisions of section 114 (b) (4) of the Revenue Act of 1934,1 maintaining that such expenditures were in no way connected with the product of the property on which depletion was computed. It argues that operating expenses and any other deductions which must be deducted in arriving at net income, as contemplated…
2Cases cited1 opinion
- Helvering v. Wilshire Oil Co.Supreme Court of the United States · 1939
3Cited by5 opinions
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- Grison Oil Corp. v. CommissionerUnited States Board of Tax Appeals · 1940
- Island Creek Coal Co. v. CommissionerUnited States Tax Court · 1964
- Montreal Mining Co. v. CommissionerUnited States Board of Tax Appeals · 1940
- Rialto Mining Corp. v. CommissionerUnited States Tax Court · 1946