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business with Pioneer, because the Diesel Power he had created
had "ceased to exist". We conclude therefrom that petitioner
earned the entire commission reflected on the CTC receipts
journal as having been paid by Pioneer during 1978.
I. Galion
We note initially that, in the notice of deficiency,
respondent determined unreported "Other" income from Galion in
1973 in the amount of $2,368.24. Petitioner in his brief
contends that this was a part of direct payments to Diesel Power
that are not taxable to him. Because respondent does not make
any reference to this amount on brief, we conclude that
respondent has conceded this determination, and we hold for
petitioner with respect to this amount.
All other determinations pertaining to Galion involve the
question of whether petitioner must include in income for the
years 1973 through 1978 payments from Galion that were made to
CTC at the instructions of petitioner or a CTC employee, some of
which were attributed to Diesel Power on the CTC receipts
journals. We conclude that he must. There were direct dealings
between Diesel Power and Galion prior to the years at issue, as
evidenced by the existence in 1969 of a sales relationship
between the two companies and a negotiated settlement concerning
overdue time drafts signed by Mr. Khalatbari. However, the 1969
distributorship contract between Diesel Power and Galion, which
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