Dorothy Glenn Coal Mining Co. v. Commissioner

In its 1933 and 1934 income tax returns petitioner claimed depletion deductions in respect of its coal properties on the basis of cost. The respondent disallowed the deductions on the ground that the lease had no cost basis within the meaning of the statute, a conclusion now conceded by petitioner to be correct. Petitioner claims, however, that it is entitled, under the statute, to depletion deductions for each of the years in question computed on the percentage basis. Held, as to 1933, that the petitioner was not required under section 114(b)(4) of the Revenue Act of 1932 to make an election…