Sussex Square Apartments Ltd. v. R., 99 DTC 443, [1999] 2 CTC 2143 (TCC), aff'd 2000 DTC 6548, [2000] 4 CTC 203, Docket: A-40-99 (FCA) -- summary under Paragraph 12(1)(a)

The taxpayer, which carried on the business of leasing real property, was the lessee of all but one suite in six three-storey apartment buildings. Amounts which it received for the assignment of some of the leases to prospective "purchasers" gave rise to profits on income account from the disposition of leasehold interests, whereas amounts received for the sublease of other suites for terms expiring one day prior to the term of the headlease gave rise to prepaid rent under s. 12(1)(a). The second category included assignments that were retroactively amended by court order to be subleases, whereas the first category included assignments that subsequently were ostensibly rectified by deed to be subleases without court approval.