California State Board of Equalization v. Coast Radio Products

This is an appeal from an order of the district court affirming an order of a referee in bankruptcy permanently enjoining appellant Board of Equalization from collecting from the discharged appellee partnership or the discharged individual partners, sales tax indebtedness of $1,980.01, which was incurred prior to the date appellees were adjudicated bankrupts.

Prior to September 29, 1950, appellees Smith and Boroff were doing business as Coast Radio Products, a copartnership. On that date an involuntary petition in bankruptcy was filed in the United States District Court, 1 against the co-partnership. Voluntary petitions in bankruptcy by said copartners were filed in the same court on December 13, 19,50. Orders of adjudication were entered in all cases on the filing date. The part *522 nership and the individual copartners were discharged on February 7, 1951, and March 8, 1951, respectively.

Schedules of Debts filed in the respective proceedings listed taxes due and owing to appellant under the California Sales and Use Tax Law, totaling $1,-980.01. Although appellant received notice of the proceedings, it filed no claim for the above taxes within six months of the creditors’…