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Respondent argues alternatively that the voting trust was
both a grantor trust under subpart E and a U.S. shareholder under
subpart F. Respondent asserts that Textron is the voting trust’s
grantor and, in accordance with subpart E, must include in its
income any Avdel subpart F income realized by the trust.
Petitioner replies that subpart E was not intended to be applied
in the manner suggested by respondent.
A. Summary Judgment
Summary judgment is intended to expedite litigation and
avoid unnecessary and expensive trials of phantom factual issues.
P & X Mkts., Inc. v. Commissioner, 106 T.C. 441, 443 (1996),
affd. without published opinion 139 F.3d 907 (9th Cir. 1998).
Summary judgment is appropriate where there is no genuine issue
as to any material fact and a decision may be rendered as a
matter of law. Rule 121(b); P & X Mkts., Inc. v. Commissioner,
supra at 443. In deciding whether to grant summary judgment, the
Court must consider the factual materials and inferences drawn
from them in the light most favorable to the nonmoving party.
Bond v. Commissioner, 100 T.C. 32, 36 (1993); Naftel v.
Commissioner, 85 T.C. 527, 529 (1985).
The parties agree that for the purpose of deciding these
cross-motions there are no genuine issues of material fact and
that the Court may decide the issue as a matter of law. This
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