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Memo. 1993-630. Instead, the ground upon which the tax benefits
are disallowed or conceded is significant. Dybsand v.
Commissioner, supra. Even in situations in which there are
arguably two grounds to support a deficiency and one supports a
section 6659 addition to tax and the other does not, the taxpayer
may still be liable for the addition to tax. Gainer v.
Commissioner, 893 F.2d 225, 228 (9th Cir. 1990), affg. T.C. Memo.
1988-416; Irom v. Commissioner, 866 F.2d 545, 547 (2d Cir. 1989),
vacating in part T.C. Memo. 1988-211; Harness v. Commissioner,
supra.
In the present case, no argument was made and no evidence
was presented to the Court to prove that disallowance and
concession of the claimed loss deduction and investment tax
credits related to anything other than a valuation overstatement.
To the contrary, petitioners stipulated substantially the same
facts concerning the Resource transactions as we found in
Provizer v. Commissioner, supra. In the Provizer case, we held
that the taxpayers were liable for the section 6659 addition to
tax because the underpayment of taxes was directly related to the
overvaluation of the Sentinel EPE recyclers. The overvaluation
of the recyclers, exceeding 2,325 percent, was an integral part
of our findings in Provizer that the transaction was a sham and
lacked economic substance. Similarly, the record in this case
plainly shows that the overvaluation of the recyclers is integral
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