Kennedy Mining Co. v. Commissioner
United States Board of Tax Appeals
In computing percentage depletion as permitted by the Revenue Act of 1934, section 114(b)(4), "income from the property" held to include income received by the owner and operator of a mine from the sale of minerals extracted from reworked tailings, even though these had previously been availed of in computing unit depletion. Atlas Milling Co. v. Jones (C.C.A., 10th Cir.), 115 Fed.(2d) 61, distinguished.
1Opinion of the Court
*620OPINION.
Opper:
Petitioner since prior to March 1, 1913, has been the proprietor and operator of a gold mine. For many years antecedent to 1932 its practice had been to accumulate the tailings or refuse consequent upon its! extraction process in a surface deposit. During the two taxable years which confront us, an improved metallurgical process was being applied to the accumulated tailings with a consequent addition to petitioner’s gross and1 net income. Prior to 1934 petitioner had claimed depletion deductions on the unit basis but in that year elected percentage depletion, which was the…
2Cases cited3 opinions
- Palmer v. BenderSupreme Court of the United States · 1932
- Helvering v. Bankline Oil Co.Supreme Court of the United States · 1938
- Helvering v. Elbe Oil Land Development Co.Supreme Court of the United States · 1938
3Cited by4 opinions
- Commissioner of Internal Revenue v. Kennedy Mining & Milling Co.Court of Appeals for the Ninth Circuit · 1942
- Tonopah Mining Co. v. CommissionerCourt of Appeals for the Third Circuit · 1942
- Consolidated Chollar Gould & Savage Mining Co. v. CommissionerUnited States Board of Tax Appeals · 1942
- Kennedy Mining Co. v. CommissionerUnited States Board of Tax Appeals · 1941