Petitioner is engaged in the business of reselling or finishing and reselling fabric. Sidney Gladstone, president of petitioner, purchased fabric from Jerry Silverman, who worked for M. Loewenstein Corporation. Silverman agreed to sell fabric to petitioner for a lower price on the condition that petitioner make certain "payments" to Silverman and to others. The payments were made by checks. Petitioner's books listed these payments as commissions...
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