Mahendra K. Tandon - Page 11

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               Petitioner's medical practice was incorporated as Superior             
          in 1988.  Petitioner deposited the medical practice's receipts              
          into various bank accounts.  Respondent argues that petitioner              
          had dominion and control over these accounts; petitioner argues             
          that he did not.                                                            
               Unless the nontaxable nature of deposits is established,               
          gross income includes deposits to bank accounts where the                   
          taxpayer has dominion and control of the funds.  See Commissioner           
          v. Glenshaw Glass Co., 348 U.S. 426, 431 (1955); Davis v. United            
          States, 226 F.2d 331, 334-335 (6th Cir. 1955); see also Manzoli             
          v. Commissioner, T.C. Memo. 1988-299, affd. 904 F.2d 101 (1st               
          Cir. 1990).  The use of money for personal purposes is an                   
          indication of dominion and control.  Woods v. Commissioner, T.C.            
          Memo. 1989-611, affd. without published opinion 929 F.2d 702 (6th           
          Cir. 1991).                                                                 
               Petitioner's argument is unsupported by the evidence.  His             
          sister, Ms. Khana, Superior's incorporator, testified that                  
          petitioner controlled Superior and that she did not receive a               
          single penny from the corporation.  Petitioner used the AT #3               
          account and the Independent Savings Bank account to pay for his             
          personal expenses.  Petitioner also had a power of attorney to              
          make withdrawals out of the Independent Savings Bank account.               
          Furthermore, the Society National Bank account was in                       
          petitioner's name.  Even though petitioner's medical practice was           
          incorporated in 1988, petitioner continued to deposit medical               

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