Big Four Oil & Gas Co. v. Commissioner
United States Board of Tax Appeals
For many years petitioner was allowed depletion deductions upon the basis of the March 1, 1913, estimate of recoverable oil reserves. During 1928 it was discovered that the original estimate was too low. Respondent made a new estimate as of January 1, 1928, upon which he computed depletion deductions. Held, respondent had authority to reestimate the amount of reserves and to compute allowable depletion deductions upon the new basis.
1Opinion of the Court
*62OPINION.
Marquette:
Petitioner contends that the respondent had no authority to reestimate the amount of remaining recoverable reserves. It takes the view that the right to have such reestimate is a relief provision for the sole benefit of the taxpayer.
Section 23 (1) of the Revenue Act of 1928 authorizes as deductions from gross income:
In the ease of mines, oil and gas wells, other natural deposits, and timber, a reasonable allowance for depletion and for depreciation of improvements, according to the peculiar conditions in each case; such reasonable allowance in all cases to be made under…
2Cases cited2 opinions
- Sterling Coal Co. v. CommissionerUnited States Board of Tax Appeals · 1927
- Staub Coal Co. v. CommissionerUnited States Board of Tax Appeals · 1929
3Cited by8 opinions
- McCahill v. CommissionerUnited States Board of Tax Appeals · 1934
- Wylie v. United StatesDistrict Court, N.D. Texas · 1968
- Big Four Oil & Gas Co. v. CommissionerUnited States Board of Tax Appeals · 1933
- Commissioner of Internal Revenue v. Superior Yarn Mills, Inc.Court of Appeals for the Fourth Circuit · 1955
- Commissioner of Internal Revenue v. Superior Yarn Mills, Inc.Court of Appeals for the Fourth Circuit · 1955
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