Rev. Rul. 60-320

The principles of the recent decision of the Supreme Court of the United States in United States v. Cannelton Sewer Pipe Company , 364 U.S. 76, Ct.D. 1849, page 452, this Bulletin, will be applied in the disposition of cases involving the definition of the term `mining' for purposes of percentage depletion. Also in view of this decision, certain revenue rulings, long in contest by many taxpayers and inconsistent with the position taken administratively and in litigation, will be revoked.

However, the principles of the Cannelton decision will not apply in the case of calcium carbonates or other minerals when used in making cement where a proper election is made under section 4 of P.L. 86-781, page 726, this Bulletin, approved September 14, 1960.

Cases previously examined and closed may be reopened only in accordance with the procedures outlined in Revenue Procedure 59-25, C.B. 1959-2, 938.

Percentage depletion in the case of an integrated miner-manufacturer of vitrified clay products. See Ct. D. 1849, page 452.

¹ Based on Technical Information Release 257, issued September 23, 1960.