Microsoft Corporation - Page 17

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            adjustment  relating  to  the  disallowance".    See Loeser v.                              
            Commissioner, 27 B.T.A. 601, 606 (1933).  The restricted consent                            
            could have merely read: "The amount of any deficiency assessment is                         
            to be limited to that resulting from Microsoft's use of the profit-                         
            split method."  In our opinion, "the disallowance of Microsoft's                            
            use of the profit split method" refers to Microsoft's qualification                         
            to elect the profit-split method.  Moreover, we believe reference                           
            to "The Service's proposed adjustment" (emphasis added) is a strong                         
            point in petitioner's favor restricting the consent to issues                               
            previously raised in the NOPA and the 30-day letter.                                        
                  To conclude, the restricted consent was not broad enough to                           
            encompass the alternative adjustment raised by respondent's amended                         
            answer.  Consequently, respondent's motion for partial summary                              
            judgment will be denied, and petitioner's cross-motion for partial                          
            summary judgment will be granted.                                                           


                                                         An appropriate order will be                   
                                                issued.                                                 















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