Dominion of Canada General Insurance Co. v. The Queen, 86 DTC 6154, [1986] 1 CTC 423 (FCA) -- summary under Paragraph 12(1)(e)

Stone JA stated (at p. 6163) that the words of s. 85B(1)(e) (now, s. 12(1)(e)) "are directed toward the inclusion in income of an 'amount' that was 'deducted' in the previous year and not toward an amount that was 'deductible' in that year." Where an amount was in fact deducted in a previous year by a taxpayer purporting to comply with the provisions of what now is s. 20(1)(m), that amount was to be brought into income under s. 12(1)(e) notwithstanding that the deduction in the previous year may not have been properly taken. "This is particularly so where, as here, the assessment of that [previous year's] income has been made and accepted and cannot now be challenged" (p. 6164).