Legal Opinion

Elk Lick Coal Co. v. Commissioner

United States Tax Court

Decided December 31, 1954No. Docket No. 39215PublishedCited by 6 opinions

Held, losses sustained by petitioner in 1947, 1948, and 1949 from abandonment of certain components of its mining plant and from scrapping of certain mining equipment must be deducted from gross income in computing net income for purposes of determining its percentage depletion allowance under sections 23 (m) and 114 (b) (4) (A) and (B) of the 1939 Code.

1Opinion of the Court

OPINION.

Rice, Judge:

This proceeding involves deficiencies in income tax determined against the Elk Lick Coal Company (hereinafter referred to as the petitioner) as follows:

Year Amount

1947_$2, 661. 77

1948_ 1,294. 84

1949_ 177. 76

The only issue raised is whether certain losses sustained by the petitioner during each of the years in question are deductible from its gross income in determining net income for purposes of computing its annual depletion allowance under sections 23 (m) and 114 (b) (4) (A) and (B)1 of the Internal Revenue Code of 1939 in effect for the taxable years here involved.

All…

2Cases cited1 opinion

  1. Monroe Coal Mining Co. v. CommissionerUnited States Tax Court · 1946

3Cited by6 opinions

  1. Shell Oil Co. v. CommissionerUnited States Tax Court · 1987
  2. Island Creek Coal Co. v. CommissionerUnited States Tax Court · 1964
  3. Island Creek Coal Company v. Commissioner of Internal RevenueCourt of Appeals for the Fourth Circuit · 1967
  4. Elk Lick Coal Co. v. CommissionerUnited States Tax Court · 1954
  5. Island Creek Coal Co. v. CommissionerUnited States Tax Court · 1964

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