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AMCOR to each initial general partner. The AMCOR purchase
agreement is dated December 12, 1985, and it is not retrospective
in its discussion of such sale: It states that the initial
general partners “own” a 1-percent interest in the partnership
and AMCOR “is desirous” of purchasing one-half of that interest.
Because of the substantial purchase price to be paid to each
initial general partner, we think it a fair inference that the
initial general partners would take no actions to admit AMCOR to
the partnership as a co-general partner until they had received
payment. Payments totaling $375,000 would be documented by
checks, receipts, evidence of withdrawals or deposits, or the
like, which could establish the fact of such payments on or
before February 1, 1985. AVA’s failure to produce such evidence
leads to the inference that either such evidence does not exist
or would be negative to petitioner. See Wichita Terminal
Elevator Co. v. Commissioner, 6 T.C. 1158, 1165 (1946) (“the
failure of a party to introduce evidence within his possession
and which, if true, would be favorable to him, gives rise to the
presumption that if produced it would be unfavorable”), affd. 162
F.2d 513 (10th Cir. 1947). Putting such inference together with
the execution of the AVA purchase document on December 12, 1985,
and the filing of the amendment to the AVA certificate on
December 23, 1985, adding AMCOR as a general partner, leads us to
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