H. M. Holloway, Inc. v. Commissioner

OPINION.

Habhon, Judge:

The issue in this proceeding is whether the petitioner is entitled to depletion allowances based upon discovery value, as provided in sections 23 (m) and 114 (b) (2), Internal Revenue Code, in connection with its operations, during the taxable years, in the mining and sale of gypsum from sections 11 and 14 of the Richfield lease. The petitioner, in its income tax returns for the fiscal years ended June 30,1946, and June 30, 1947, claimed depletion deductions based upon discovery value in the amounts of $29,284.32 and $41,233.79, respectively. The respondent determined…