Kirby Petroleum Co. v. Commissioner

The writ of certiorari in Kirby Petroleum Co. v. Commissioner brings here for review the judgment of the Circuit Court of Appeals for the Fifth Circuit, 148 F. 2d 80, reversing the decision of the Tax Court, 2 T. C. 1258, which had sustained the taxpayer’s position. The narrow issue is the deductibility under Sections 23 (m) and 114 (b) (3) 1 of the Internal Revenue Code of the depletion allowance of 27% per centum of gross income from the property during the taxable year, permitted by those sections from the taxpayer’s gross income for 1940 from certain oil leases.

The taxpayer owned the fee…