It was submitted on behalf of a mining stock promoter that he should be permitted to follow the "project" method of accounting in determining the cost of his speculative shareholding in a junior mining company, i.e., deducting the receipts from the sale of the shares against the cost of all his shares until the entire cost of the venture was recovered, and only recognizing income to the extent that the cumulative amount of the proceeds received by him exceeded the aggregate cost of his shares. Pigeon J., in finding that this method contravened what then was s. 12(1)(e) stated (p. 5158):
"What appellant is really trying to accomplish by this "project" method of accounting is to set up against the contingency that his inventory might drop in value, a reserve equal to his profit so far on the operation."