Frankel Corporation Ltd. v. Minister of National Revenue, 59 DTC 1161, [1959] CTC 244, [1959] S.C.R. 713 -- summary under Commodities, and commodities futures and derivatives

By services, 28 November, 2015

The taxpayer, which was engaged in dealing in scrap metals, smelting and refining non-ferrous metals, and in carrying on a wrecking and salvage operation and a steel fabrication and erection operation received $78,096 over book for the inventory of its non-ferrous division on the sale of all the assets (including goodwill) of the non-ferrous operation.

Because the non-ferrous operation was a separate business, the above profit of $78,096 was received on capital account. The sale of the inventory "was not a sale in the business of the appellant, but was made as a part of a sale of a business of the appellant."

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