Ted Davy Finance Co. Ltd. v. MNR, 64 DTC 5124, [1964] CTC 194 (Ex Ct) -- summary under Inventory

Proceeds received by the taxpayer, which carried on the business of purchasing conditional sales contracts (mostly from a related used car dealer) and lending on the security of chattel mortgages, from the sale of its contracts and mortgages, were capital receipts. In finding that what was sold was not "inventory," Gibson J stated (at p. 5126) that the "definition of inventory...should not be given the broadest meaning that could be attached to it."