Herring v. Commissioner, 293 U.S. 322 (1934)

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Herring v. Commissioner


No. 176


Argued November 16, 1934
Decided December 3, 1934 *
293 U.S. 322

CERTIORARI TO THE CIRCUIT COURT OF APPEALS
FOR THE FIFTH CIRCUIT

Syllabus

1. The percentage deduction from gross income permitted by § 204(c)(2) of the Revenue Act of 1926 as an allowance for depletion in the case of oil and gas wells is applicable to advance royalties and bonuses received by a lessor upon the execution of an oil and gas mining lease, even though there were no wells on the property and no production of oil or gas during the taxable year. Pp. 324, 327.

2. The reenactment of a statutory provision without alteration indicates legislative approval of administrative regulations theretofore adopted and applied. P. 325.

70 F.2d 785 reversed.

Certiorari to review judgments of the Circuit Court of Appeals in two income tax cases wherein decisions of the Board of Tax Appeals sustaining the action of the Commissioner in disallowing claimed deductions for depletion were affirmed.