A
W
Prociuk:—This
is
an
appeal
from
an
assessment
for
the
taxation
year
1968
wherein
the
Minister
ruled
that
the
net
proceeds
of
sale
of
land
by
the
appellant
was
taxable
income.
The
case
was
heard
on
March
22,
1971
at
a
hearing
held
at
the
City
of
Kitchener,
in
the
Province
of
Ontario,
at
which
the
presiding
member
was
J
O
Weldon,
Esq,
QC,
then
a
member
of
the
Tax
Appeal
Board
which,
on
December
15,
1971,
became
the
Tax
Review
Board.
However,
judgment
was
reserved
and
no
decision
rendered
by
him
prior
to
his
retirement
from
the
Board
in
March
of
1972.
Accordingly,
by
consent
of
both
parties,
this
Board
has
now
been
given
jurisdiction
to
issue
its
decision
and
judgment
on
the
basis
of
the
transcript
of
the
evidence
and
the
argument
before
Mr
Weldon,
without
further
representation
by
counsel.
The
appellant,
age
59,
is
in
food
retail
business
in
the
Village
of
Markdale,
Ontario.
The
evidence
discloses
that
for
years
prior,
his
side
interest
was
in
developing
sporting
facilities,
in
particular
skiing,
with
some
considerable
success.
In
1963,
he
purchased
8
acres
of
land
in
the
County
of
Grey
for
$1,750
for
the
purpose
of
building
for
himself
and
his
wife
a
cottage
and
a
ski
chalet.
A
ski
resort
which
he
had
helped
promote
and
establish
was
already
in
existence
not
too
far
from
this
acreage.
Some
three
years
later,
after
several
conferences
with
his
wife,
who
was
also
his
business
partner,
he
concluded
that
a
ski
chalet
was
not
feasible.
The
evidence
also
shows
that
in
the
interval
he
made
some
improvements
on
this
property
for
the
eventual
construction
of
his
cottage.
He
then
decided
to
build
his
cottage
on
another
location.
In
1968
he
sold
the
8
acres
and
used
the
proceeds
thereof
for
the
construction
of
his
cottage.
Nowhere
in
the
transcript
is
there
any
tangible
evidence
that
his
Original
intention
in
acquiring
this
acreage
was
for
trading
purposes.
On
the
contrary,
the
appellant
repeated
time
and
again
his
intention
to
develop
this
property
for
himself.
Equally,
there
is
no
evidence
of
any
secondary
intent.
He
states
in
his
evidence:
“At
no
time
had
!
ever
intended
to
buy
this
on
a
speculative
basis.
I
was
too
proud
of
it
not
to
build
a
home
on
it
and
to
ever
think
of
selling
it..
..”
When
he
and
his
wife
some
years
later
decided
not
to
go
on
with
this
original
plan
this
change
of
mind
does
not
in
my
humble
opinion
make
the
sale
of
this
acreage
a
trading
profit.
The
appeal,
accordingly,
is
allowed.
Appeal
allowed.
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