Victory Sand & Concrete, Inc. v. Commissioner
United States Tax Court
Petitioner was engaged in the business of extracting and selling sand and gravel from the Kansas River, on a tract of land owned by it. Sand and gravel in the bed of the river was replenished to some extent by the flow of the river but the quality and quantity thereof was diminishing, particularly after flood control and conservation dams were built on the tributaries of the Kansas River upstream from petitioner's mining area.
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Petitioner was engaged in the business of extracting and selling sand and gravel from the Kansas River, on a tract of land owned by it. Sand and gravel in the bed of the river was replenished to some extent by the flow of the river but the quality and quantity thereof was diminishing, particularly after flood control and conservation dams were built on the tributaries of the Kansas River upstream from petitioner's mining area. Held, petitioner had an economic interest in the deposit of sand and gravel in its permit area sufficient to entitle it to percentage depletion deductions produced by…
1Opinion of the Court
Deennen, Judge:*
Respondent determined deficiencies in petitioner’s Federal corporate income tax as follows:
Tear Deficiency
1967 -$2,175.94
1968 _ 2,487.05
1969 _ 2, 551. 57
The issue for decision is whether petitioner is entitled to percentage depletion deductions under sections 611 and 613 with respect to sand and gravel which it extracted from the Kansas River during the tax years at bar. Resolution depends on two subissues: (1) Whether the deposit of sand and gravel in the Kansas River must be shown to be exhaustible before petitioner may claim the allowances, and, if so, whether the deposit…
2Cases cited19 opinions
- Palmer v. BenderSupreme Court of the United States · 1932
- United States v. LudeySupreme Court of the United States · 1927
- Commissioner v. Southwest Exploration Co.Supreme Court of the United States · 1956
- 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
14 more not listed; retrieve them via the Exa API.
3Cited by9 opinions
- Weaver v. CommissionerUnited States Tax Court · 1979
- Missouri Pacific Corp. v. United StatesUnited States Court of Claims · 1984
- Missouri River Sand Co. v. CommissionerUnited States Tax Court · 1984
- Linebery v. CommissionerUnited States Tax Court · 1975
- Missouri River Sand Company v. Commissioner of Internal RevenueCourt of Appeals for the Eighth Circuit · 1985
4 more not listed; retrieve them via the Exa API.