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IN RE PACIFIC-ATLANTIC TRADING CO.

No. 93-16668.

64 F.3d 1292 (1995)

In re PACIFIC-ATLANTIC TRADING COMPANY, a California corporation, Debtor. Edward F. TOWERS, Trustee, for Pacific Atlantic Trading Company, a California corporation, Plaintiff-Appellee, v. UNITED STATES of America and Internal Revenue Service, Defendants-Appellants.

United States Court of Appeals, Ninth Circuit.

Decided August 23, 1995.

Attorney(s) appearing for the Case

Gary D. Gray, Tax Div., U.S. Dept. of Justice, Washington, DC, for defendants-appellants.

Dennis D. Davis, Goldberg, Stinnett, Meyers & Davis, San Francisco, CA, for plaintiff-appellee.

Before: HUG, ALARCON, and TROTT, Circuit Judges.

ALARCON, Circuit Judge:

The United States of America ("Government") appeals from the district court's order affirming the judgment of the bankruptcy court. The district court ruled that the Government's claim for 1988 income taxes, filed as an administrative claim in Pacific Atlantic Trading Company's ("PATCO") Chapter 7 bankruptcy, was not an allowable administrative expense because: (1) the taxes were taxes of a kind specified in 11 U.S.C. § 507(a)(7)(A)(iii...

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