LEVET, District Judge.
This is a proceeding brought by the District Director of Internal Revenue for the District of North Carolina to review an order of the Referee in Bankruptcy which disallowed the government's claim for interest and for penalties beyond the date of the filing of the petition for relief under Chapter XI of the Bankruptcy Act, 11 U.S.C.A. § 701 et seq.
The facts are undisputed. On July 2, 1954, the debtor filed its petition for relief...
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