Duncan & Associates - Page 10

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          respectively.                                                               
               Respondent also determined in the notice to disallow the               
          deductions petitioner claimed in its 1990 return of $9,610 and              
          $25,000, respectively, for “outside services” and contributions             
          to petitioner’s pension and/or profit sharing plan.                         
                                     Discussion                                       
               The Court may grant summary judgment where there is no                 
          genuine issue of material fact and a decision may be rendered as            
          a matter of law.  Rule 121(b); Sundstrand Corp. v. Commissioner,            
          98 T.C. 518, 520 (1992), affd. 17 F.3d 965 (7th Cir. 1994).                 
               All of the facts on which respondent relies in respondent’s            
          motion have been deemed admitted.  Those facts include the                  
          material facts on which we may proceed to resolve the issues in             
          respondent’s motion, including the issue relating to the fraud              
          penalties under section 6663(a), see, e.g., Doncaster v. Commis-            
          sioner, 77 T.C. 334, 337 (1981).  We conclude that there are no             
          genuine issues of material fact regarding the issues raised in              
          respondent’s motion.                                                        
               With respect to respondent’s determinations that petitioner            
          has a deficiency in tax for each of the years at issue, on the              


               4(...continued)                                                        
          notice petitioner understated its gross receipts for 1991 is                
          wrong due to mathematical errors by respondent, including respon-           
          dent’s mathematical error noted above.  The correct amount by               
          which petitioner understated its gross receipts for 1991 is                 
          $209,252.  Respondent’s mathematical errors in the notice shall             
          be corrected in the parties’ computations under Rule 155.                   




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