Consolidated Chollar Gould & Savage Mining Co. v. Commissioner
United States Board of Tax Appeals
Petitioner acquired property in Nevada upon which were "dumps" composed of broken ore-bearing rock taken from mines located on adjacent property. At the time the "dumps" were placed on petitioner's property they were considered worthless. As a result of improvements in extracting methods the contents of these dumps were milled by petitioner at a profit.
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Petitioner acquired property in Nevada upon which were "dumps" composed of broken ore-bearing rock taken from mines located on adjacent property. At the time the "dumps" were placed on petitioner's property they were considered worthless. As a result of improvements in extracting methods the contents of these dumps were milled by petitioner at a profit. Held, these "dumps" are not mines and petitioner is not entitled to percentage depletion under sections 23(m) and 114(b)(4) of the Acts of 1936 and 1938. Atlas Milling Co. v. Jones, 115 Fed.(2d) 61, followed; Kennedy Mining & Milling Co.,43…
1Opinion of the Court
*244OPINION.
Keen :
The question which is here presented for decision is whether the “dumps” which were deposited upon petitioner’s premises from adjacent mines and from which ore was extracted can be considered as a mine within the meaning of section 114 (b) (4), set out above, and section 23 (m) ,2 which sections appear as quoted in the Revenue Acts for both 1936 and 1938.
In Atlas Milling Co. v. Jones, 115 Fed. (2d) 61 (certiorari denied, 312 U. S. 686), the taxpayer, pursuant to its rights under a lease contract, went upon certain lands and removed crushed rock which constituted the residue from…
2Cases cited2 opinions
- Forbes v. GraceySupreme Court of the United States · 1877
- South Utah Mines & Smelters v. Beaver CountySupreme Court of the United States · 1923
3Cited by1 opinion
- Consolidated Chollar Gould & Savage Mining Co. v. CommissionerUnited States Board of Tax Appeals · 1942