MACLEAN J :—This is an appeal from the decision of the Minister of National Revenue affirming an assessment made by the Commissioner of Income Tax against the appellant, Sterling Royalties Limited, for income tax, for the fiscal year ended May 31, 1934.
The appeal is confined to paragraphs two and three set forth in what is called "‘Statement of Facts and Recapitulation”, a document served upon the Minister of National Revenue by the appellant and which is found in the documents transmitted to the Registrar of this Court in connection with this appeal. Those two paragraphs, and the preceding one which I think might usefully also be mentioned, read as follows:—
"‘1. Sterling Royalties Limited is a Company which has drilled an oil well in Turner Valley. The Minister of National Revenue has assessed this Company on a basis applicable to ordinary mining Companies. It is submitted that in view of the short life of wells in Turner Valley investment in such wells should not be treated as a capital investment. The Minister has treated development costs in whole or in part as a capital investment when the nature of the undertaking is in reality not a capital investment. The proper assessment should have allowed deduction for expenses in connection with drilling and other development costs.
"2. The Minister, taking the position that the operations of the Company above referred to constitute an investment in capital, has not allowed depreciation to an amount appropriate in the circumstances having regard to the period of the life of wells in Turner Valley and the nature of development of oil wells in said area.
1 " 3. The Minister did not make a proper allowance in the said assessment for depletion in respect of properties developed by the appellant’’.
The grounds relied on in this appeal are similar to those raised on an appeal in the ease of National Petroleum Corporation Limited v. The Minister of National Revenue, and it was agreed that the evidence in that case and the exhibits therein, should become a part of the record in this case in so far as they might be found applicable. No evidence was submitted by either party in this appeal, nor were there any pleadings, but there was filed an Agreed Statement of Facts, signed by counsel for the parties hereto.
I have rendered a decision in writing in the case of National Petroleum Corporation Limited vs. The Minister of National Revenue, dismissing the appeal asserted therein, and to which I would refer, and there appearing to be no distinction between the matters in issue in that appeal and the present appeal, it would seem unnecessary to enter into any discussion of the grounds of appeal in this case. I would therefore dismiss this appeal and with costs and which costs I tax at $25.00.
Appeal dismissed with costs.