Virginian Limestone Corp. v. Commissioner
United States Tax Court
1. Held, that certain rock which petitioner quarried and sold during the taxable year was dolomite, within the commonly understood commercial meaning of that term. 2. Held, further, that under the provisions of section 114 (b) (4) (A) of the 1939 Code, as amended, percentage depletion is allowable, within the limitation provided, at the rate of 10 per cent on all dolomite which petitioner quarried and sold in the taxable year; and that the Commissioner is not authorized to…
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1. Held, that certain rock which petitioner quarried and sold during the taxable year was dolomite, within the commonly understood commercial meaning of that term. 2. Held, further, that under the provisions of section 114 (b) (4) (A) of the 1939 Code, as amended, percentage depletion is allowable, within the limitation provided, at the rate of 10 per cent on all dolomite which petitioner quarried and sold in the taxable year; and that the Commissioner is not authorized to vary such rate (either upward or downward), by reason of the end uses to which petitioner's products were put by…
1Opinion of the Court
OPINION.
Pierce, Judge:
The controversy here is basically one as to the proper construction and application of those provisions of the 1939 Code, as amended,2 which control the rates of percentage depletion for petitioner’s product.
The petitioner’s position is that, when Congress provided in section 114 (b) (4) (A) (ii) that the allowance for depletion “shall be * * * in the case of dolomite * * * 10 per centum * ⅜ * of the gross income from the property during the taxable year,” it intended the term “dolomite” to mean and designate a particular class of natural rock which is commonly known by…
2Cases cited3 opinions
- Commissioner v. Southwest Exploration Co.Supreme Court of the United States · 1956
- Penn Mutual Life Insurance v. LedererSupreme Court of the United States · 1920
- E. J. Lavino & Co. v. United StatesDistrict Court, E.D. Pennsylvania · 1947
3Cited by37 opinions
- Alabama By-Products Corporation v. George D. Patterson, District Director of Internal RevenueCourt of Appeals for the Fifth Circuit · 1958
- South Jersey Sand Company v. Commissioner of Internal RevenueCourt of Appeals for the Third Circuit · 1959
- Spencer Quarries, Inc. v. CommissionerUnited States Tax Court · 1956
- Quartzite Stone Co. v. CommissionerUnited States Tax Court · 1958
- South Jersey Sand Co. v. CommissionerUnited States Tax Court · 1958
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