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the refunding of that deposit. Finally, the credit
invoice [customer core sales invoice] issued by
Petitioner to its customers relates to the sale of the
remanufactured automobile part to the customer, not the
purchase of a core by Petitioner. The absence of an
invoice or invoice price regarding customer cores is
not surprising when the transaction between Petitioner
and its customer is analyzed for what it is: an
exchange in which the customer's core is received by
Petitioner as partial payment for the remanufactured
automobile part sold.
When a customer purchases one of Petitioner's
remanufactured automobile parts, the customer must
either provide to Petitioner a core, corresponding in
type and style to the remanufactured automobile part
purchased, or post a core deposit with the under-
standing that the deposit will be refunded when the
customer returns his or her core. * * * If a customer
were to provide a core to Petitioner at the time of
sale, the existence of the exchange would be indis-
putable: the customer receives a remanufactured
automobile part in exchange for cash (the exchange
amount) and the customer's core. See Treas. Reg. �
1.1002-1(d)(exchange defined as a reciprocal transfer
of property, as distinguished from a transfer of
property for a money consideration only). The fact
Petitioner's customers do not generally provide a core
to it at the time of sale does not, as Respondent would
have this Court hold, transform the transaction into
two separate sales.
It is well established "that an integrated
transaction may not be separated into components for
the purposes of taxation by either the Internal Revenue
Service or the taxpayer." Redwing Carriers, Inc. v.
Tomlinson, 399 F.2d 652, 658 (5th Cir. 1968); see also
Kanawha Gas & Utilities Co. v. Commissioner of Internal
Revenue, 214 F.2d 685, 691 (5th Cir. 1954) * * *
* * * * * * *
In Burrell v. Commissioner, 400 F.2d 682 (10th
Cir. 1968), affirming 26 T.C.M. (CCH) 748 (1967), a
case factually indistinguishable from the one at bar,
the exchange * * * analysis set forth above * * * [was]
recognized by both the Tax Court and the Tenth Circuit
Court of Appeals. [Fn. ref. omitted.]
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