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Discussion
Rule 120(a) provides that after the pleadings are closed and
within such time as not to delay the trial, any party may move
for judgment on the pleadings. A motion for judgment on the
pleadings is appropriate only where the pleadings do not raise a
genuine issue of material fact, but rather involve issues that
may be decided as a matter of law. Thus, respondent's motion is
to be granted only if, on the admitted facts, respondent is
entitled to decision as a matter of law. Anthony v.
Commissioner, 66 T.C. 367 (1976), affd. without published opinion
566 F.2d 1168 (3d Cir. 1977). The determinations made by
respondent in the notice of deficiency are presumed correct; the
burden of proof is on petitioners to show that these
determinations are erroneous. Rule 142(a); Welch v. Helvering,
290 U.S. 111 (1933); Rockwell v. Commissioner, 512 F.2d 882, 887
(9th Cir. 1975), affg. T.C. Memo. 1972-133.
The factual allegations deemed admitted under Rule 37(c)
establish that petitioners failed to report income in the amount
of $182,752 for the taxable year 1991, an amount that is
primarily attributable to petitioner Dennis J. Deneault's sales
of illegal narcotics. In addition, petitioners failed to
maintain, or submit to respondent for examination, adequate books
or records regarding the income and expenses relating to their
income during the year in issue. Consistent with these deemed
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