In his notice of deficiency respondent determined deficiencies in income taxes against petitioner for the calendar years 1935 and 1936 in the respective amounts of $70,600.23 and $165,565.98. Subsequently in his amended answer respondent prayed that the net income for the years 1935 and 1936 on which these deficiencies were based be increased by the respective amounts of $8,048.59 and $12,010.71 and that the deficiencies be increased accordingly. The first question is whether...
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