U.S. Supreme Court
Helvering v. O'Donnell, 303 U.S. 370 (1938)
Helvering v. O'Donnell
Argued February 9, 10, 1938
Decided March 7, 1938
303 U.S. 370
A shareholder in a corporation owning oil properties has no interest in the oil and gas in place -- no capital investment -- which will entitle him to an allowance for depletion under Revenue Act of 1926, §§ 204(c)(2), 214(a)(9), nor, upon sale of his shares to one who acquires the wells from the corporation, does he acquire such depletable interest through the vendee's covenant to pay him a portion of the net profits from development and operation of the properties. P. ___.
90 F.2d 907, reversed.
Certiorari, 302 U.S. 676, to review the affirmance of a decision of the Board of Tax Appeals, 32 B.T.A. 1277, which overruled a deficiency income tax assessment. chanroblesvirtualawlibrary