Black Mountain Corp. v. Commissioner
United States Tax Court
Oil treatment applied by petitioner at the mine to portion of its bituminous coal held not shown to be an ordinary treatment process normally applied in order to obtain the commercially marketable mineral product or products within the meaning of section 114 (b) (4), Internal Revenue Code, so as to permit inclusion of proceeds thereof in "gross income from the property" for purposes of computing percentage depletion.
1Opinion of the Court
OPINION.
Opper, Judge:
Petitioner subjected a part of the output of its coal mine to an oil treatment process designed to make the coal more salable for domestic home heating purposes. The question is whether the price received for coal so treated may be used in its entirety as gross income from the mining property for purposes of computing depletion under section 114 (b) (4) (A), Internal Revenue Code,1 or whether as respondent has determined a deduction must be made for the part of the value of the product attributable to the oil treatment.
The statute was amended in 1943 so that as applicable…
2Cases cited5 opinions
- International Talc Co. v. CommissionerUnited States Tax Court · 1950
- New Idria Quicksilver Min. Co. v. COM'R OF INTERNAL REV.Court of Appeals for the Ninth Circuit · 1944
- Brea Cannon Oil Co. v. Commissioner of Internal Rev.Court of Appeals for the Ninth Circuit · 1935
- E. J. Lavino & Co. v. United StatesDistrict Court, E.D. Pennsylvania · 1947
- New Idria Quicksilver Mining Co. v. CommissionerUnited States Tax Court · 1943
3Cited by3 opinions
- McClelland v. CommissionerUnited States Tax Court · 1984
- Black Mountain Corp. v. CommissionerUnited States Tax Court · 1954
- McClelland v. CommissionerUnited States Tax Court · 1984