Burnet v. Thompson Oil & Gas Co.

The Commissioner of Internal Revenue determined a deficiency in the respondent’s income tax for 1918. Upon the taxpayer’s petition the Board of Tax Appeals sustained the Commissioner. An appeal was taken to the Court of Appeals, which reversed the judgment of the Board, 40 F. (2d) 493. This court granted certiorari, 282 U. S. 823.

The question presented is whether under § 234 (a) (9) of the Revenue Act of 1918, 2 in determining for any taxable year the capital value, recoverable through depletion allowance, of oil mining properties acquired prior to March 1, 1913, there should be deducted from…