Dillard-Waltermire, Inc. v. Ellis Campbell, Jr., District Director of Internal Revenue

TUTTLE, Circuit Judge.

This is an appeal from a judgment of the trial court without a jury finding in favor of the defendant District Director of Internal Revenue in a suit for refund of federal income taxes.

Appellant is engaged in the business of drilling oil and gas wells under contract. It reports income from drilling contracts on a completed contract basis; that is, it is not entitled to any of the contract price unless the well is drilled to the prescribed depth in accordance with the contract. Compensation is not, of course, dependent upon the discovery of oil or gas, but it is dependent…