NORTHERN NATURAL GAS CO. v. COMMISSIONER

Docket No. 4372-63.

44 T.C. 74 (1965)

NORTHERN NATURAL GAS COMPANY, PETITIONER, v. COMMISSIONER OF INTERNAL REVENUE, RESPONDENT.

United States Tax Court.

Filed April 14, 1965.


Attorney(s) appearing for the Case

James W. R. Brown, for the petitioner.

Jerry M. Reinsdorf, for the respondent.


MULRONEY, Judge:

Respondent determined a deficiency in petitioner's income tax for the calendar year 1955 in the amount of $33,145.18.

There are two issues: (1) Were certain costs incurred by the Northern Natural Gas Co. in transporting its gas deductible expenses or part of the inventory costs of the gas it sold and (2) what was its cost of gas purchased from its subsidiary.

FINDINGS OF FACT

Petitioner is a corporation with its principal...

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