MACLEAN
J
:—This
is
an
appeal
from
the
decision
of
the
Minister
of
National
Revenue
affirming
an
assessment
made
by
the
Commissioner
of
Income
Tax
against
the
appellant,
Sterling
Royalties
Limited,
for
income
tax,
for
the
fiscal
year
ended
May
31,
1934.
The
appeal
is
confined
to
paragraphs
two
and
three
set
forth
in
what
is
called
"‘Statement
of
Facts
and
Recapitulation”,
a
document
served
upon
the
Minister
of
National
Revenue
by
the
appellant
and
which
is
found
in
the
documents
transmitted
to
the
Registrar
of
this
Court
in
connection
with
this
appeal.
Those
two
paragraphs,
and
the
preceding
one
which
I
think
might
usefully
also
be
mentioned,
read
as
follows:—
"‘1.
Sterling
Royalties
Limited
is
a
Company
which
has
drilled
an
oil
well
in
Turner
Valley.
The
Minister
of
National
Revenue
has
assessed
this
Company
on
a
basis
applicable
to
ordinary
mining
Companies.
It
is
submitted
that
in
view
of
the
short
life
of
wells
in
Turner
Valley
investment
in
such
wells
should
not
be
treated
as
a
capital
investment.
The
Minister
has
treated
development
costs
in
whole
or
in
part
as
a
capital
investment
when
the
nature
of
the
undertaking
is
in
reality
not
a
capital
investment.
The
proper
assessment
should
have
allowed
deduction
for
expenses
in
connection
with
drilling
and
other
development
costs.
"2.
The
Minister,
taking
the
position
that
the
operations
of
the
Company
above
referred
to
constitute
an
investment
in
capital,
has
not
allowed
depreciation
to
an
amount
appropriate
in
the
circumstances
having
regard
to
the
period
of
the
life
of
wells
in
Turner
Valley
and
the
nature
of
development
of
oil
wells
in
said
area.
1
"
3.
The
Minister
did
not
make
a
proper
allowance
in
the
said
assessment
for
depletion
in
respect
of
properties
developed
by
the
appellant’’.
The
grounds
relied
on
in
this
appeal
are
similar
to
those
raised
on
an
appeal
in
the
ease
of
National
Petroleum
Corporation
Limited
v.
The
Minister
of
National
Revenue,
and
it
was
agreed
that
the
evidence
in
that
case
and
the
exhibits
therein,
should
become
a
part
of
the
record
in
this
case
in
so
far
as
they
might
be
found
applicable.
No
evidence
was
submitted
by
either
party
in
this
appeal,
nor
were
there
any
pleadings,
but
there
was
filed
an
Agreed
Statement
of
Facts,
signed
by
counsel
for
the
parties
hereto.
I
have
rendered
a
decision
in
writing
in
the
case
of
National
Petroleum
Corporation
Limited
vs.
The
Minister
of
National
Revenue,
dismissing
the
appeal
asserted
therein,
and
to
which
I
would
refer,
and
there
appearing
to
be
no
distinction
between
the
matters
in
issue
in
that
appeal
and
the
present
appeal,
it
would
seem
unnecessary
to
enter
into
any
discussion
of
the
grounds
of
appeal
in
this
case.
I
would
therefore
dismiss
this
appeal
and
with
costs
and
which
costs
I
tax
at
$25.00.
Appeal
dismissed
with
costs.
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