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SUNBURY TEXTILE MILLS, INC. v. C. I. R.

No. 78-1031.

585 F.2d 1190 (1978)

SUNBURY TEXTILE MILLS, INC., Appellant, v. COMMISSIONER OF INTERNAL REVENUE.

United States Court of Appeals, Third Circuit.

Decided October 31, 1978.

Attorney(s) appearing for the Case

David Milne, IV, M. Duncan Grant, Pepper, Hamilton & Scheetz, Philadelphia, Pa., Richard Henry Klein, Sunbury, Pa., for appellant.

M. Carr Ferguson, Asst. Atty. Gen., Gilbert E. Andrews, Richard W. Perkins, John G. Manning, Attys., Tax Div., Dept. of Justice, Washington, D. C., for appellee.

Before ALDISERT and HIGGINBOTHAM, Circuit Judges, and STERN, District Judge.

OPINION OF THE COURT

ALDISERT, Circuit Judge.

The question presented in this appeal by the taxpayer, Sunbury Textile Mills, Inc., is whether the Tax Court properly interpreted a contract between Sunbury, a small textile producer in northern Pennsylvania, and Crompton & Knowles Corp. (C&K), a manufacturer of weaving machines.

In March 1969, Sunbury contracted to purchase 72 looms from C&K. Delivery was made in three segments over a period...

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