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section 6621(c). In reaching the conclusion that the transaction
lacked economic substance and a business purpose, this Court
relied heavily upon the overvaluation of the Sentinel EPE
recyclers.
Although petitioners have not agreed to be bound by the
Provizer opinion, they have stipulated that the investments in
the Sentinel EPE recyclers in these consolidated cases are
similar to the investment described in Provizer v. Commissioner,
supra. The underlying transactions in these consolidated cases,
and the Sentinel EPE recyclers considered in these consolidated
cases, are the same type of transaction and same type of machines
considered in Provizer v. Commissioner, supra.
Based on the entire record in these consolidated cases,
including the extensive stipulations, testimony of respondent's
experts, and petitioner's testimony, we hold that each of the
Partnership transactions herein was a sham and lacked economic
substance. In reaching this conclusion, we rely heavily upon the
overvaluation of the Sentinel EPE recyclers. Respondent is
sustained on the question of the underlying deficiencies. We
note that petitioners have explicitly conceded this issue in the
stipulations of settled issues filed shortly before trial. The
record plainly supports respondent's determinations regardless of
such concession. For a detailed discussion of the facts and the
applicable law in a substantially identical case, see Provizer v.
Commissioner, supra.
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