Hitchcock Corp. v. Townsend

HAYES, District Judge.

This case involves the interpretation of 26 U.S.C.A. § 23(m) and 26 U.S.C.A. § 114(b) (4) (A) and (B) (i-iv).1

The controversy here arises over the determination of the gross income of plaintiff from which 15% depletion is to be deducted. Plaintiff computed its gross income from its gross sales of pul*786verized talc and talc crayons; the Commissioner disallowed any costs after the tale was brought to the surface as a result of which plaintiff was compelled to pay additional taxes for 1948 of $16,-343.63 with interest amounting to $4,-254.54, which was paid July 20, 1953.

The…