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such expenses. Pebley v. Commissioner, T.C. Memo. 1981-701,
affd. without published opinion 703 F.2d 576 (9th Cir. 1983).
Even if petitioners were to conform the pleadings to the proof,
the evidence introduced by petitioners at trial regarding alleged
additional business expenses was so unsubstantial that such a
motion, if made, would be denied. Goldsmith v. Commissioner, 31
T.C. 56, 63-64 (1958).
In any event, with exception of two items that the parties
have agreed to, we reject the evidence regarding claimed
additional business expenses of Cal Ben.1 Petitioner’s self-
serving testimony that Cal Ben's payments from unreported sales
deposited into the Lloyds/Sanwa account were used for additional
off-the-book partnership expenses was not credible. Copies of
checks drawn on the Lloyds/Sanwa account indicate that much of
the sales receipts deposited into the Lloyds/Sanwa account was
used to make personal investments and to pay personal expenses.
Other checks were merely made payable to petitioner Barbara
Schachter or to David Karp personally. The names of the payees
on many of the checks are illegible.
Petitioners did not call as trial witnesses any of the
individual payees whose names on the checks are legible to
testify as to the purposes of the payments, nor did petitioners
1 At trial, respondent did allow petitioner additional
deductible business expenses for consulting payments of
$19,502.59 and for truck depreciation.
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