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IN RE TAMASHA TOWN AND COUNTRY CLUB

No. 71-1634.

483 F.2d 1377 (1973)

In re TAMASHA TOWN AND COUNTRY CLUB, Bankrupt. Don ROTHMAN, Trustee, Appellant, v. UNITED STATES of America, Appellee.

United States Court of Appeals, Ninth Circuit.

August 30, 1973.

Attorney(s) appearing for the Case

Ralph E. Schub (argued), Sulmeyer, Kupetz & Alberts, Los Angeles, Cal., for appellant.

Karl Schmeidler (argued), Johnnie M. Walters, Asst. Atty. Gen., Tax Div., Dept. of Justice, Washington, D. C., Robert L. Meyer, U. S. Atty., Alan H. Friedman, Asst. U. S. Atty., Los Angeles, Cal., Meyer T. Rothwacks, Crombie J. D. Garrett, William S. Estabrook, III, Tax Div., Dept. of Justice, Washington, D. C., for appellee.

Before ELY and HUFSTEDLER, Circuit Judges, and TURRENTINE, District Judge.

OPINION

HUFSTEDLER, Circuit Judge:

On July 31, 1962, Tamasha Town and Country Club ("Tamasha") filed a petition for an arrangement under section 322, Chapter XI of the Bankruptcy Act ("Act"). (11 U.S.C. § 722.) Operations were continued under "debtor in possession" status. Tamasha's First Amended Plan of Arrangement was confirmed on January 21, 1965. In accordance with the plan of arrangement, $14,000 was deposited by Tamasha to pay the priority creditors...

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