Dak, Inc. - Page 18

                                       - 17 -                                         
               tapes, it was probably a weekday that was slow for some                
               reason.  We also took July 14th and came up with $542                  
               as the total for that particular day.                                  
                    So I felt that between these two, substantiating a                
               $328 average of the prior year was within reason.                      
               As we said in Diaz v. Commissioner, 58 T.C. 560, 564                   
               This case epitomizes the ultimate task of a trier of                   
               the facts--the distillation of truth from falsehood                    
               which is the daily grist of judicial life.  We must be                 
               careful to avoid making the Courtroom a haven for the                  
               skillful liar or a quagmire in which the honest                        
               litigant is swallowed up.  Truth itself is never in                    
               doubt, but it often has an elusive quality which makes                 
               the search for it fraught with difficulty.  That this                  
               is so is clearly illustrated by the situation herein.                  
               * * *                                                                  
               We closely observed Mr. Chiate and Mr. Ozenne at trial.  We            
          find the testimony of each of them to have been contrived and               
          untrustworthy, and we completely disregard it.                              
               On the other hand, we found Ms. Groom to be a credible,                
          forthcoming witness whose professionalism was evidenced by the              
          documentation admitted at trial to credit her audit of petitioner           
          for the applicable period.                                                  
               She consulted with the restaurant’s accountant and                     
          bookkeeper, Mr. Kelson (the original owner of Moonshadows).  She            
          reviewed the daily meal tickets, the daily cash register tapes              
          from cash registers 1 (dining room) and 2 (bar), and, in                    
          particular, the manual computations prepared by Mr. Kelson on a             
          daily basis to reconcile cash register tape l with cash register            

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