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petitioners' part, rather than actual future needs that NITCO
anticipated and planned to meet during 1987 through 1989. It was
not until late 1992 and 1993 that petitioners first advised
respondent's counsel that these asserted needs were among NITCO's
alleged reasonable business needs. Moreover, these asserted
future needs were too vague and uncertain to be considered
reasonably anticipated business needs of NITCO during 1987
through 1989. Sec. 1.537-1(b)(1), Income Tax Regs.
With respect to possible telephone company acquisition and
cellular telephone diversification, the record is not clear
whether Mr. Mussman intended to have NITCO or individual members
of the Mussman family, undertake and benefit from such activities
or ventures. Although NITCO applied for a cellular telephone
license with respect to the Indiana RSA #1 area in 1988, the
record reflects that Mr. Mussman's plan and intention was to
transfer the cellular telephone license rights that were obtained
to Serv-U-Cellular, another corporation that he and one or more
of his sons, individually, would own. Petitioners have failed to
establish that telephone company acquisition and cellular
telephone diversification were reasonable business needs of NITCO
during 1987 through 1989. Rule 142(a).
In conclusion, we find that NITCO's reasonable business
needs, during 1987 through 1989, were as follows:
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