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attributing the income at issue to him by virtue of the opinion
in Durkin v. Commissioner, supra. Finally, he contends that the
loans, upon which the bonus payments were made, constituted
income to the partnership that made the loans, and, therefore,
such income from the bonus payments should be attributable to the
partnerships involved, Delta and Alpha, and would flow through to
CMS Investors, in which latter partnership Holding Co. was a
partner, and that he was never a partner in either CMS Investors,
Delta, or Alpha.
Respondent argues that, with respect to the bonus payments
flowing through to CMS Investors, such income was earned
individually by Kanter and not by Holding Co. under the
assignment of income principle. See Lucas v. Earl, 281 U.S. 111
(1930). Respondent argues that the loans by Delta and Alpha were
not by these entities, and, therefore, Delta and Alpha were not
the "trees" that bore the fruit; i.e., the bonus payments.
Respondent appears to base this contention on the Court's finding
in Durkin v. Commissioner, supra, that the bonus payments were
not made for the "use" of money but were used as a mechanism to
divert funds to the various entities that were "established for
the benefit of the LK partners and/or their immediate families".
Respondent further contends that there was no need for the loans
to Shelburne and Century because Shelburne and Century would, in
due course, realize funds from movie revenues that would have
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