Before finding that payments made to municipalities in order to secure their acquiescence to the taxpayer's application for permission to terminate passenger railway service in the area, were payments whose deduction was not prohibited by s. 12(1)(a) of the pre-1972 Act (before considering the prohibition against the deduction of capital expenditures in s. 12(1)(b)), Abbott J. stated (pp. 1027-1028):
"Since the main purpose of every business undertaking is presumably to make a profit, any expenditure made 'for the purpose of gaining or producing income' comes within the terms of s. 12(1)(a) whether it be classified as an income expense or as a capital outlay."