CAMERON, J.:—This is an appeal by the Minister of National Revenue from a decision of the Income Tax Appeal Board dated October 17, 1950 (3 Tax A.B.C. 33). By consent I heard this appeal and similar appeals in four other cases at the same time. In the other cases, the Minister of National Revenue had also appealed from decisions of the Income Tax Appeal Board, the respondents being L. D. Caulk Co. of Canada, Ltd. (No. 46469), Dominion Dental Co. Ltd. (No. 43983), The Dental Co. of Canada, Ltd. (No. 46470), and Goldsmith Brothers Smelting and Refining Co. Ltd. (No. 43981). The principle involved in each case were precisely the same and it was therefore agreed that a formal judgment should be rendered in one case only and that that judgment would be applicable to all.
In this case the Minister in the Notice of Assessment dated September 29, 1949, for the taxation year 1947, disallowed a deduction of $1,125.00, said to have been incurred for legal expenses. The Income Tax Appeal Board found that that sum was actually disbursed by the respondent in the taxation year 1947 ; that the expenditure was incurred in payment of solicitors’ charges of $625.00 (the said solicitors having represented the respondent at the investigation held by the Commissioner under the Combines Investigation Act), and that the remaining $500.00 was paid by the respondent to counsel retained to represent it in the event of any prosecution following the report of the said Commissioner, the respondent’s solicitors being unable to represent them at such trial. The Board allowed the respondent’s appeal as to the said sum of $1,125.00, vacated the assessment and referred the matter back to the Minister to allow the said deduction.
Judgment has now been given in the Caulk case [[1952] C.T.C. 1] and for the reasons therein given the decision of the Income Tax Appeal Board is affirmed and the appeal herein will be dismissed with costs to be taxed.
Judgment accordingly.