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respondent on brief stands by the concession for that year.
However, respondent filed Amendments to Answers in IRA's cases
for 1979, 1981 and 1982. In such Amendments to the Answers,
respondent claimed that the "commission expenses" paid to J.D.
Weaver in 1979, 1981, and 1982 in the amounts of $51,643,
$38,601, and $74,015, respectively, should be disallowed.
Contrary to IRA's contention, respondent's concession for
1983 does not mean a concession by respondent that the payments
to Weaver by IRA's subsidiary KWJ were "commissions" for work or
services Weaver performed for either IRA or KWJ in 1979, 1981 and
1982. It is clear that in the Hyatt transactions, Weaver
influenced Lisle in connection with the awarding of the
Embarcadero management contract to Hyatt. For his influence,
A.N. Pritzker gave Weaver a 10-percent interest in the profits
that Hyatt earned on the hotel. These payments were made by
Hyatt to KWJ. After Hyatt went private, Weaver sold his stock in
KWJ Corporation to IRA. In the sale, Weaver retained the right
to receive 30 percent of the commissions thereafter paid by
Hyatt. As these commissions were later paid by Hyatt to KWJ, the
30-percent portion was remitted to Weaver by IRA pursuant to the
sales agreement. These amounts were claimed as business expense
deductions on the consolidated income tax returns of IRA (which
included KWJ's operations) for the years in question. The Court
is satisfied from the record that after the sale of the KWJ stock
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