Weirton Ice & Coal Supply Co. v. Commissioner
United States Tax Court
Petitioner contracted to go on the coal lands owned by the National Steel Corporation and to strip mine, clean, and deliver to National such coal as National might direct. Under the contract petitioner was to be paid a specified amount for each ton of coal delivered. By giving 90 days' notice either party could terminate this contract.
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Petitioner contracted to go on the coal lands owned by the National Steel Corporation and to strip mine, clean, and deliver to National such coal as National might direct. Under the contract petitioner was to be paid a specified amount for each ton of coal delivered. By giving 90 days' notice either party could terminate this contract. Held, petitioner did not possess an "economic interest" in the coal in place and, therefore, was not entitled to a percentage depletion deduction under sections 23(m) and 114(b) (4) of the Internal Revenue Code of 1939. Morrisdale Coal Mining Co., 19 T. C. 208,…
1Opinion of the Court
OPINION.
BRUCE, Judge:
The issue presented is whether petitioner is entitled to a percentage depletion deduction under sections 23 (m) and 114 (b) (4) of the Internal Revenue Code of 1939,1 on the coal mined, cleaned, and delivered to National during the taxable years involved. Petitioner is entitled to the depletion deduction only if it had an “economic interest” in the coal in place. Kirby Petroleum Co. v. Commissioner., 326 U. S. 599. An “economic interest” exists in “every case in which the taxpayer has acquired, by investment, any interest in the oil [or coal] in place, and secures, by any…
2Cases cited7 opinions
- Palmer v. BenderSupreme Court of the United States · 1932
- Burton-Sutton Oil Co. v. CommissionerSupreme Court of the United States · 1946
- Helvering v. Bankline Oil Co.Supreme Court of the United States · 1938
- Kirby Petroleum Co. v. CommissionerSupreme Court of the United States · 1946
- Morrisdale Coal Mining Co. v. CommissionerUnited States Tax Court · 1952
2 more not listed; retrieve them via the Exa API.
3Cited by5 opinions
- Virginia B. Coal Co. v. CommissionerUnited States Tax Court · 1956
- Matagorda Shell Co. v. CommissionerUnited States Tax Court · 1958
- Fink v. CommissionerUnited States Tax Court · 1958
- Fink v. CommissionerUnited States Tax Court · 1958
- Weirton Ice & Coal Supply Co. v. CommissionerUnited States Tax Court · 1955