Arora v. The Queen, 2006 TCC 244

Docket: 2003-2341(IT)G

BETWEEN:

AMRIT ARORA,

Appellant,

and

HER MAJESTY THE QUEEN,

Respondent.

____________________________________________________________________

Appeals heard on April 11, 2006, at Toronto, Ontario

Before: The Honourable Justice R.D. Bell

Appearances:

____________________________________________________________________

JUDGMENT

The appeals from the reassessments made under the Income Tax Act for the 1998, 1999 and 2000 taxation years are allowed with costs to the extent that the non-capital loss incurred by the Appellant in his 1992 taxation year is carried forward and applied as to $8,662 to his 1998 taxation year and as to $21,822 to his 1999 taxation year and the reassessments are referred back to the Minister of National Revenue for reconsideration and reassessment on the foregoing basis.

Signed at Ottawa, Canada, this 20^th day of April 2006.

"R.D. Bell"

Citation:2006TCC244

Date: 20060420

Docket: 2003-2341(IT)G

BETWEEN:

AMRIT ARORA,

Appellant,

and

HER MAJESTY THE QUEEN,

Respondent.

REASONS FOR JUDGMENT

Bell, J.

[1]    The Appellant, in his 1992 taxation sustained a loss in the amount of $485,250 in respect of a real estate property purchased by him for the avowed purpose of reselling at a profit. In fact he sustained a loss in the above amount.

[2]      His Counsel submitted that the amount of $323,500 was a non-capital loss and the amount of $161,750 was a capital loss. The closing date of the purchase was some two years after the purchase was made. According to counsel, because of the Appellant's inability to sell the property, he decided to change the use and attempted to rent same. At that point Counsel submitted that the property became capital property, resulting in the claim of non-capital and capital losses as above described. The only non-business losses available to be claimed were with respect to the 1998 taxation years as to $8,662 and with respect to the 1999 taxation years as at $21,822, the ability to carry non-business losses forward having expired in 1999.

[3]      Since no capital gain existed in the years under appeal, no decision was made by the Court as to whether the amount of $161,750 or any part thereof, was a capital loss. That matter remains to be determined in the future if a claim for deduction of a capital loss from an amount of capital gain arises.

Signed at Ottawa, Canada this 20^th day of April, 2006.

Bell, J.

CITATION:                                        2006TCC244

COURT FILE NO.:                             2003-2341(IT)G

STYLE OF CAUSE:                           AMRIT ARORA AND HER MAJESTY THE QUEEN

PLACE OF HEARING:                      Toronto, Ontario

DATE OF HEARING:                        April 11, 2006

REASONS FOR JUDGMENT BY:     The Honourable Justice R.D. Bell

DATE OF JUDGMENT:                     April 20^th, 2006

APPEARANCES:

COUNSEL OF RECORD:

       For the Appellant:                        

                   Name:                              Robert G. Ackerman       

                   Firm:                                Ackerman Law Office

       For the Respondent:                     John H. Sims, Q.C.

                                                          Deputy Attorney General of Canada

                                                          Ottawa, Canada