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of these facts and circumstances led to our conclusion that the
cluster home and condominium transactions were sales, as
respondent contended. However, some factors supported
petitioner's position. Given the peculiarly factual nature of
the inquiry, we think that petitioner can be said to have had
substantial authority for its treatment of the cluster home and
condominium transactions. Therefore, we hold that petitioner is
not liable for the addition to tax for substantial
understatement.
To reflect the above holdings and respondent's concession,
Decision will be entered
under Rule 155.
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