Canada Safeway Limited v. The Queen, 2006 DTC 3144, 2006 TCC 345, aff'd 2008 FCA 24 -- summary under Real Estate

The taxpayer entered into a joint venture agreement with a developer for the development of a shopping centre because it wished to build a store at the shopping centre, which it expected to be profitable, and it wished to prevent a competitor from building on or near the site. Beaubier J. found that the taxpayer acquired its interest in the joint venture as an adventure in nature of trade, so that a gain ultimately realized by it when it sold its interest in the joint venture was on income account, in light of a clause in the joint venture agreement which provided that the taxpayer had a right to sell its co-ownership interest to the developer at a profit of $2 million upon rezoning being achieved. It did not do so, because it projected realizing a greater profit upon sale to a third party.