Baton Coal Co. v. Commissioner of Internal Revenue

THOMPSON, Circuit Judge.

This case comes up upon petition for review of a decision of the Board of Tax Appeals finding deficiencies in the petitioner’s income taxes for the years 1926 and 1927.

On November 2, 1925, petitioner leased •certain coal properties from the Shenango Eumaee Company for a term of one year ■ at a rental consisting of $40,000 in quarterly payments of $10,000, a royalty upon the coal mined of 25 cents per ton, with a minimum royalty of $50,000, and payment of the taxes on the property. All payments made under the lease were deducted as expenses on the petitioner’s income…