R. A. Riddell, District Director of Internal Revenue, Los Angeles District v. Monolith Portland Cement Co.

This is another of the “statutory percentage mining depletion allowance” cases, involving taxpayer’s 1952 return. We have for consideration the effect on this case, if any, of United States v. Cannelton Sewer Pipe Co., 1960, 364 U.S. 76 , 80 S.Ct. 1581 , 4 L.Ed.2d 1581 , as well as the effect of the previous Monolith decision (Monolith Portland Cement Co. v. United States, 9 Cir. 1959, 269 F.2d 629 ), determining the same taxpayer’s 1951 liability.

An income tax liability of $156,286.65 shown on appellee’s 1952 return was paid by taxpayer in 1953. An additional $25,396.60, plus interest of $5,002.43, was assessed against it and paid in 1956. Taxpayer filed, on or about February 24, 1956, a timely claim for refund of $99,-070.81 in taxes paid for 1952, which was disallowed by appellant. Taxpayer and appellant executed a timely extension of the period of limitations for the calendar year 1952; within six months thereafter, taxpayer filed two more claims for refund in the amounts of $181,683.24 and $82,-612.44 respectively, which were neither allowed nor disallowed. Within the time provided in Section 3772 of the Internal Revenue Code of 1939, 26 U.S.C.A. § 3772 , taxpayer brought…