Crown Cork & Seal Canada Inc. v. The Queen, 90 DTC 6586 (FCTD)

At the request of the taxpayer, the vendor of equipment purported to pass title in the equipment to the taxpayer in its 1979 taxation year. However, the equipment at that point was a "mass of metal" which was not yet suitable for the taxpayer's manufacturing operations. Accordingly, the taxpayer had not acquired a Class 29 asset in its 1979 taxation year:

"That which the taxpayer acquires must be the asset upon which it is permitted to deduct capital cost allowance and not mere components to go with that which has not yet been developed." (p. 6592)

The claiming by the corporation of CCA on an asset which had not yet been substantially completed was based on a misunderstanding of the kind of asset upon CCA could be taken. Accordingly, the penalty was not exigible. "The care with which they went about the business, although not great, certainly did not amount to gross negligence" (p. 6595).