Riddell v. Monolith Portland Cement Co., 371 U.S. 537 (1963)

Riddell v. Monolith Portland Cement Co.

No. 528

Decided January 14, 1963
371 U.S. 537

ON PETITION FOR WRIT OF CERTIORARI TO THE UNITED STATES

COURT OF APPEALS FOR THE NINTH CIRCUIT

Syllabus

The Internal Revenue Code of 1939 permitted taxpayers to deduct as a depletion allowance a percentage of "gross income from mining" and defined "mining" as including the "ordinary treatment processes normally applied by mine owners . . . to obtain the commercially marketable mineral product or products." During the taxable year 1952, respondent mined limestone from its own quarry, crushed it, transported the crushed product two miles to its plant, and there, through the addition of other materials and further processing, manufactured the limestone into cement, which it sold.

Held: Respondent’s depletion allowance must be based not upon the value of the finished cement, but upon the value of the product of the "mining" when it reached the crushed limestone stage. United States v. Cannelton Sewer Pipe Co., 364 U.S. 76. Pp. 537-539.

301 F.2d 488 reversed.