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Documentary Evidence
The record contains a considerable number of documents.27
In large measure, however, the record is devoid of any general
ledgers, books of account, receipts, or other records supporting
petitioner’s claims, which the Court finds to be credible.28 We
infer from petitioner’s failure to produce credible records to
substantiate his claims with respect to the issues that remain in
this case on which he has the burden of proof that such records
do not exist and that, if such records do exist, they do not
substantiate those claims. See Wichita Terminal Elevator Co. v.
Commissioner, 6 T.C. 1158, 1164-1165 (1946), affd. 162 F.2d 513
(10th Cir. 1947).29
Unreported Income
In the notices, respondent determined that petitioner has
27The Court admitted certain of those documents into the
record only for a limited purpose. For example, the Court
admitted into evidence copies of the front sides of certain
checks only as copies of the front sides of such checks, and not
to show that those checks were in fact negotiated or, if negoti-
ated, that those checks were deposited and/or cashed by the
payees listed on the copies of the front sides of those checks.
28For example, petitioner claims that during the years at
issue certain of the deposits into petitioner’s accounts, includ-
ing certain of the payments against the balances due on peti-
tioner’s credit accounts, were nontaxable loans or advances.
However, the record contains no credible documentary evidence to
support those claims, such as promissory notes.
29The principle that we may infer from the failure of a
party, who has the burden of proof on a given matter, to offer
evidence that exists regarding such a matter that such evidence
would not have been favorable to that party’s position regarding
that matter is so well established that hereinafter we shall not
cite the case law supporting that principle.
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