Court Opinion

ID: 9641736
Source: CourtListenerOpinion
Date Created: 2023-08-22 17:39:17.28765+00
Date Added: 2024-06-11T18:10:39.486173
License: Public Domain

FOSTER, Circuit Judge
(dissenting).
I agree with the conclusion of the majority of the couft as to the allowance of a deduction for depletion on the income received by the taxpayer out of the proceeds of oil produced from the lease. However, I think we should go further and allow a deduction for depletion on the cash, payment, not dependent on the production of oil, since the taxpayer retained an economic interest in the oil in place. Palmer v. Bender, 287 U. S. 551, 53 S.Ct. 225, 77 L.Ed. 489. I therefore respectfully dissent.