- 10 - of one of many documentary exhibits collected in that investigation. Here the taxpayer is attempting to turn the shield of the statute of limitations into a sword and to turn on its head a doctrine intended to minimize the availability of a double deduction. The disputed element of the duty of consistency is the Government's reliance on the taxpayer's representation as to the treatment of an item on the return; if the taxpayer has disclosed on the return or during an audit questions about that treatment, the Government cannot show reliance. Under the circumstances of this case, we do not believe that disclosure of facts suggesting possibly erroneous treatment of an item 2 months prior to the expiration of the period of limitations is sufficient to terminate reliance for purposes of the duty of consistency doctrine. Finally, petitioner argues that respondent should be estopped from making the adjustment in issue here because of the success of the argument in Agro Science that the deduction allowed to similarly situated partnerships was invalid. In this regard, this case is indistinguishable from Herrington, and the result should be the same. See also Alling v. Commissioner, 102 T.C. 323, 333-336 (1994), affd. without published opinion sub nom. Handelman v. Commissioner, 57 F.3d 1063 (2d Cir. 1995), affd. without published opinion sub nom. Eisenman v. Commissioner, 67 F.3d 291 (3d Cir. 1995) ("the substance of * * *Page: Previous 1 2 3 4 5 6 7 8 9 10 11 Next
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