Darby-Lynde Co. v. Commissioner
United States Board of Tax Appeals
A corporation which acquires oil and gas properties in exchange for its capital stock is not entitled to depletion based on discovery values that were established before such acquisition.
1Opinion of the Court
OPINION.
Lansdon:
The single question here is whether the petitioner, a corporation, is entitled to compute depletion based on discovery *523values to which its predecessor, a partnership, had an undisputed right. All material facts are admitted or proved. The parties agree that the petitioner is entitled to a deduction from its income on account of the depletion of its oil and gas reserves and differ only as to the correct basis' for computing the amount thereof.
The Revenue Act of 1924 provides at section 204 (c):
The basis upon which depletion, exhaustion, wear and tear, and obsolescence are to be…
2Cited by5 opinions
- Alamo Coal Co. v. CommissionerUnited States Board of Tax Appeals · 1934
- Crocker v. CommissionerUnited States Board of Tax Appeals · 1934
- Darby-Lynde Co. v. CommissionerUnited States Board of Tax Appeals · 1930
- McCrory v. CommissionerUnited States Board of Tax Appeals · 1932
- Philadelphia & Reading Corp. v. United StatesUnited States Court of Claims · 1979