Regal Heights Ltd. v. Minister of National Revenue, 60 DTC 1270, [1960] CTC 384, [1960] S.C.R. 902 -- summary under Real Estate

The taxpayer, whose shareholders devoted a significant but ultimately unsuccessful efforts to interest a major department store in becoming a tenant in a proposed shopping centre which would have been developed on a significant acreage of land which the shareholders acquired and transferred to the taxpayer, disposed of the land at a profit after the most likely such tenant publicly announced that it intended to locate a department store in the neighbourhood but on another site. Judson J. upheld the finding of the trial judge but although the primary aim of the shareholders was the establishment of a shopping centre, their intention from the beginning was to sell at a profit if they are unable to carry out their primary aim, in light of the fact that they had no assurance when they entered upon their venture that they could interest a major department store as a tenant.