Helvering v. Bankline Oil Co.

No. 887.—This case presents the question whether respondent, the Bankline Oil Company, is entitled to an allowance for depletion with respect to gas produced from certain oil and gas wells. The ruling of the Board of Tax Appeals that the taxpayer had no depletable interest (33 B. T. A. 910) was reversed by the Circuit Court of Appeals. 90 F. (2d) 899. Because of an asserted conflict with the principles applicable under the decisions of this Court, we granted certiorari.

Respondent in the years 1927 to 1930 operated a casing-head gasoline plant in the Signal Hill Oil Field, Los Angeles County,…