Val Royal Corporation* v. Her Majesty the Queen, [1976] CTC 207, 76 DTC 6119

By services, 24 November, 2022
Is tax content
Tax Content (confirmed)
Citation
Citation name
[1976] CTC 207
Citation name
76 DTC 6119
Decision date
d7 import status
Drupal 7 entity type
Node
Drupal 7 entity ID
664855
Extra import data
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"field_full_style_of_cause": "Val Royal Corporation, Appellant,* and Her Majesty the Queen, Respondent.",
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Style of cause
Val Royal Corporation* v. Her Majesty the Queen
Main text

The Chief Justice (per curiam) (judgment delivered from the Bench):—This is an appeal from a decision of the Tria! Division allowing an appeal by the respondent from a decision of the Tax Review Board holding that the appellant was entitled to make certain deductions in computing its income for the 1967 and 1968 taxation years for the purposes of Part I of the Income Tax Act. The judgment of the Trial Division declared “the $105,000 expenditure” made by the appellant and two other taxpayers “to be a capital disbursement and not an income disbursement”’.

The question involved is set out in the reasons for judgment of the learned trial judge in a manner that we adopt. We are, furthermore, in agreement with the reasoning whereby he reached the conclusion that he did; and we are therefore of the view that, subject to what I am about to say, the appeal should be dismissed with costs.

Counsel for the respondent is in agreement with counsel for the appellant that the assessments of the appellant that are the subject matter of this appeal should be referred back to the respondent for reassessment after considering whether capital cost allowance should be made in respect of the aforesaid payment of $105,000. Subject to such a direction, the appeal will be dismissed with costs.