United States Third Circuit

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Karns Prime & Fancy Food, Ltd. v. Comm'r of Internal Revenue, 06-1031

In case where appellant grocery store chain borrowed $1.5 million from its principal supplier to make capital improvements with agreements to repay and have the suppler be the principal wholesaler, Tax Court correctly decided that $1.5 million from appellant's supplier was not a loan and thus was includable in gross income.

Appellate Information

  • Argued 03/05/2007
  • Decided 07/20/2007
  • Published 07/20/2007


  • Before:  SLOVITER, AMBRO, Circuit Judges, and BRODY, District Judge.


  • United States Third Circuit


  • For Appellant:
  • Steven J. Schiffman, John D. Sheridan (Argued), Serratelli, Schiffman, Brown & Calhoun, Harrisburg, PA, for Appellant.

  • For Appellees:
  • Richard Farber, Bethany B. Hauser (Argued), United States Department of Justice, Washington, DC, for Appellee.
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