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indeterminate part of the claimed miscellaneous expenses relates
to the proceedings in Grigoraci I.9
Petitioners contend that costs incurred in connection with
the proceedings in Grigoraci I are recoverable in the instant
proceeding because they “were vital to the defense against”
respondent’s determination in the instant proceeding. We
disagree.
Section 7430(a) provides in relevant part that “In any
administrative or court proceeding” the prevailing party may be
awarded a judgment for reasonable administrative costs incurred
“in connection with such administrative proceeding” and for
reasonable litigation costs incurred “in connection with such
court proceeding”. (Emphasis added.) Under the plain language
of the statute, then, we may award only such administrative or
litigation costs as were incurred in connection with the instant
proceeding. We cannot in this proceeding award litigation and
administrative costs incurred in connection with the proceedings
9 Ms. Lyons’s affidavit, which itemizes the estimated
miscellaneous expenses, specifically allocates her hours of
secretarial services between the proceedings in Grigoraci I and
the instant case, but does not similarly allocate the estimated
miscellaneous expenses, from which we infer that the estimated
miscellaneous expenses relate to both the instant case and the
proceedings in Grigoraci I. This inference is supported by the
fact that the estimated miscellaneous expenses include a $36.50
item for “Transcript from U.S. Tax Court”. The instant
proceeding, unlike the proceedings in Grigoraci I, has involved
no hearing for which a transcript has been produced.
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