American Metal Climax, Inc. v. Commissioner
United States Tax Court
Petitioner, a company involved in the mining and sale of molybdenum, engaged in a program of exploration and development.
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Petitioner, a company involved in the mining and sale of molybdenum, engaged in a program of exploration and development. Held, a portion of the petitioner's 1942 income arising from the sale of molybdenum constitutes net abnormal income resulting from such exploration and development within the meaning of sections 721(a)(2)(C) and 721(a)(3), I.R.C. 1939, and is allocable to those years prior to 1942, during which the exploration and development work was done, pursuant to section 721(b), I.R.C. 1939.
1Opinion of the Court
OPINION
Petitioner seeks relief under the Internal Revenue Code of 1939 for claimed net abnormal income in 1942, of the class and as defined in section 721 (a)(1), (a)(2)(C), and (a)(3) .2 It relies on exploration and development expenditures made over a period in excess of 12 months which in 1942 allegedly produced income in excess of 125 percent of income resulting from such expenditures earned in the 4 previous taxable years. Petitioner concludes that it is entitled to have such income attributed to prior years under section 721(b) 3 and excluded from the coverage of the excess profits tax…
2Cases cited8 opinions
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- Primas Groves, Inc. v. CommissionerUnited States Tax Court · 1950
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3Cited by1 opinion
- American Metal Climax, Inc. v. CommissionerUnited States Tax Court · 1963