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(1968); Gulf Oil Corp. v. Commissioner, 89 T.C. 1010 (1987),
affd. 914 F.2d 396 (3d Cir. 1990).
Where the record contains sufficient facts to permit us to
decide a case on an issue that would dispose of it, we shall do
so, whether or not the parties have pleaded the issue. Barnette
v. Commissioner, T.C. Memo. 1992-595, affd. without published
opinion sub nom. Allied Management Corp. v. Commissioner, 41 F.3d
677 (11th Cir. 1994); see Concord Consumers Housing Coop. v.
Commissioner, 89 T.C. 105, 126 (1987) (K�rner, J., concurring);
Park Place, Inc. v. Commissioner, 57 T.C. 767, 768-769 (1972).
In Ohio Clover Leaf Dairy Co. v. Commissioner, 8 B.T.A. 1249
(1927), affd. 34 F.2d 1022 (6th Cir. 1929), the Board decided the
case on the record presented, as we do here. The parties’
failure to plead correctly does not prevent us from deciding this
case on what we consider to be the correct application of the law
to the facts in the record presented. Barnette v. Commissioner,
supra.
Our second reason for allowing petitioner to raise the de
facto liquidation issue is that respondent has not been surprised
or prejudiced by our addressing it. See Riss v. Commissioner, 56
T.C. 388, 400 (1971), affd. 478 F.2d 1160, affd. sub nom.
Commissioner v. Transport Manufacturing & Equip. Co., 478 F.2d
731 (8th Cir. 1973). The rule that a party may not raise a new
issue on brief is not absolute; it is founded upon the exercise
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