Robert A. Riddell, District Director of Internal Fevenue, Former Collector of Internal Revenue v. Victorville Lime Rock Co., a Corporation

Before us is an appeal by the appellant from a judgment of the district court awarding a refund of a portion of the income and excess profits taxes assessed against and paid by appellee for the calendar years 1950 through 1953.

Jurisdiction was conferred on the district court by Title 28 U.S.C.A. § 1346 . This Court has jurisdiction of the appeal under Title 28 U.S.C.A. §§ 1291 and 1294.

Appellee is a California corporation and maintains its principal place of business in Victorville, California. During the tax years in question the plaintiff was engaged in the business of quarrying and processing for market of limestone at its plant at Victorville, California. It obtained all of its limestone from a quarry owned and operated by it whicli was located approximately five miles from its plant. This limestone was a medium to coarse grained, crystalline, metamorphosed, friable limestone with an average calcium carbonate content of 99.30 per cent and an average silica content of .46 per cent. The calcium carbonate content of all limestone quarried by appellee was never less than 98 per cent. After extraction, appellee divided the limestone in four uniform and distinct classifications…