Consumers Natural Gas Co. v. Commissioner
United States Board of Tax Appeals
Where a taxpayer is engaged in the business of producing gas from wells and also of transporting it to consumers, the allowance for depletion of the gas wells under the Revenue Act of 1928 (27 1/2 per centum of the gross income from the property, which shall not exceed 50 per centum of the net before deducting depletion) must be computed by eliminating all income and deductions properly allocable to its business of transportation.
1Opinion of the Court
OPINION.
Murdock:
The Commissioner determined a deficiency of $886.16 for the calendar year 1929. The facts in this proceeding have been stipulated and may be summarized as follows:
The petitioner owned and operated an interest in a gas-producing property on the outskirts of Watkins Glen, New York. It also owned pipe lines and other necessary equipment with which it transported the gas produced by it from this property to consumers. The book values of its mains, pipes, and meters used in transporting and selling the gas were as follows at the end of 1929:
Gas mains_$44, 993.28
Service pipes_ 5,…
2Cases cited4 opinions
- Brea Canon Oil Co. v. CommissionerUnited States Board of Tax Appeals · 1934
- Vinton Petroleum Co. v. CommissionerUnited States Board of Tax Appeals · 1933
- Macon Oil & Gas Co. v. CommissionerUnited States Board of Tax Appeals · 1931
- Signal Gasoline Corp. v. CommissionerUnited States Board of Tax Appeals · 1934
3Cited by6 opinions
- Shamrock Oil & Gas Corp. v. CommissionerUnited States Tax Court · 1961
- Shell Oil Co. v. CommissionerUnited States Tax Court · 1987
- Consumers Natural Gas Co. v. CommissionerUnited States Board of Tax Appeals · 1934
- Kennedy Mining Co. v. CommissionerUnited States Board of Tax Appeals · 1941
- Shamrock Oil & Gas Corp. v. CommissionerUnited States Tax Court · 1961
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