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1981 sworn affidavit of one of the IGOS shareholders, Hossein
Shirazi, indicating that there was such a payment in 1976. Mr.
Shirazi was not a witness in this proceeding and thus was not
subject to cross-examination for the statements made in his
affidavit. Therefore, despite Mr. Shirazi's sworn statement that
he believed the contents of his affidavit to be true, we are
unwilling to rely solely upon this document as evidence that the
$120,000 was actually paid. We hold for petitioner for this
amount.
F. Morgan
As a preliminary matter with regard to the stipulated 1976
receipts from Morgan of $525,786.48, petitioner correctly points
out that respondent determined $449,333.24 in "other income" in
the notice of deficiency but that respondent did not file an
amended answer proposing to increase petitioner's 1976 income
from the Morgan arrangement to a higher amount. See sec.
6214(a). Accordingly, we consider only the amount of $449,333.24
listed in the notice of deficiency as "other unreported" income.
With regard to the properly determined amount for 1976 and
the full amount determined for 1977, the evidence does establish
that Diesel Power employees and petitioner worked together to
earn the Morgan income. Diesel Power employees assisted in
earning the commissions by providing price quotes, negotiating
orders, and keeping track of certain payments. Petitioner also
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