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ROSENBLATT v. TAX COMMN.

114 A.D.2d 127 (1986)

In the Matter of Eli Rosenblatt, Petitioner, v. New York State Tax Commission et al., Respondents. (Proceeding No. 1.) In the Matter of Eugene Sole, Petitioner, v. New York State Tax Commission, Respondent. (Proceeding No. 2.)

Appellate Division of the Supreme Court of the State of New York, Third Department.

January 30, 1986

Attorney(s) appearing for the Case

Roshwald, Bass, Caine & Goldstricker (Hyman Bass and Sanford Young of counsel), for petitioner in proceeding No. 1.

Gordon, Hurwitz, Butowsky, Weitzen, Shalov & Wein (Madonna M. Malin and Ellis L. Reemer of counsel), for petitioner in proceeding No. 2.

Robert Abrams, Attorney-General (Nancy A. Spiegel and Wayne L. Benjamin of counsel), for New York State Tax Commission, respondent.

MAIN, J. P., and LEVINE, J., concur with HARVEY, J.; MIKOLL and YESAWICH, JR., JJ., concur in part and dissent in part in an opinion by MIKOLL, J.

HARVEY, J.

In 1959, all of the shares of the stock of Lefferts General Hospital, Inc., located in Brooklyn, were purchased by a group of medical doctors for the purpose of operating the hospital on a profit-making basis. A board of directors was elected, all of whom were shareholders, and the directors thereafter elected certain of its members as president, vice-president...

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