- 19 - disadvantage to the petitioner in the presentation of his case because of the manner in which the statutory notice and pleadings were drawn”. Estate of Horvath v. Commissioner, 59 T.C. 551, 555 (1973); see Mills v. Commissioner, 399 F.2d 744 (4th Cir. 1968), affg. T.C. Memo. 1967-67; Estate of Finder v. Commissioner, 37 T.C. 411 (1961). Clearly, petitioner was surprised and prejudiced by respondent’s posttrial contentions in this regard. Because neither the notice of deficiency nor the pleadings alerted petitioner to respondent’s sham argument, petitioner was denied the opportunity to present evidence regarding it. Accordingly, we decline to consider respondent’s sham argument first raised on brief. See Seligman v. Commissioner, supra. In any event, even if we were to consider respondent’s sham argument, it is not apparent how it would avail respondent. On reply brief, respondent contends that Mr. Forbes conveyed his land to the limited partnership so that his estate could claim a fractional discount with respect to its limited partnership interest.8 Respondent’s reply brief states: “The parties [i.e., Mr. Forbes, Walter, and Betty] did not really part with their property. There was no economic consequence to the conveyance to the partnership.” Respondent’s sham argument raises many 8 The record does not conclusively establish how Mr. Forbes’ estate valued his limited partnership interest for Federal estate tax purposes.Page: Previous 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Next
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