Clarion Oil Co. v. Commissioner
United States Tax Court
1. In 1937 petitioner, owning a three-fourths interest in an oil and gas lease, assigned its interest therein to an oil company for a cash payment of $ 120,000 and (a) an overriding royalty of 1/24 of production, and (b) a further payment out of production until the aggregate thereof should equal $ 320,000. Held, that the $ 120,000 received in 1937 was not "personal holding company income" within the meaning of section 353 of the Revenue Act of 1936 (added by section 1 of…
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1. In 1937 petitioner, owning a three-fourths interest in an oil and gas lease, assigned its interest therein to an oil company for a cash payment of $ 120,000 and (a) an overriding royalty of 1/24 of production, and (b) a further payment out of production until the aggregate thereof should equal $ 320,000. Held, that the $ 120,000 received in 1937 was not "personal holding company income" within the meaning of section 353 of the Revenue Act of 1936 (added by section 1 of the Revenue Act of 1937). 2. Petitioner filed its income and excess profits tax return for 1937 on the cash receipts and…
1Opinion of the Court
OPINION.
Keen, Judge:
These proceedings, consolidated for hearing, involve deficiencies in petitioner’s income tax and personal holding company surtax and penalty as follows:
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The questions in issue are:(1) Whether petitioner was a personal holding company in 1937; or, more specifically, whether an amount of $120,000 which petitioner received in that year as a cash payment in consideration for the assignment of an oil and gas lease was personal holding company income within the meaning of section 353 of the Eevenue Act of 1936 (added by section 1 of the Eevenue Act of 1937), and, if…
2Cases cited2 opinions
- Palmer v. BenderSupreme Court of the United States · 1932
- Anderson v. HelveringSupreme Court of the United States · 1940
3Cited by26 opinions
- Commissioner of Internal Revenue v. Clarion Oil Co.Court of Appeals for the D.C. Circuit · 1945
- Bayou Verret Land Co. v. CommissionerUnited States Tax Court · 1969
- Lewyt Corp. v. CommissionerUnited States Tax Court · 1952
- De Soto Securities Company v. Commission of Internal RevenueCourt of Appeals for the Seventh Circuit · 1956
- Arc Realty Co. v. CommissionerUnited States Tax Court · 1960
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