POTTER,
J
:—This
is
an
appeal
by
the
Minister
of
National
Revenue,
hereinafter
called
the
appellant,
from
a
decision
of
the
Income
Tax
Appeal
Board
dated
November
6,
1953,
allowing
an
appeal
from
an
assesment
by
the
appellant,
dated
November
10,
1952,
whereby
the
appellant
added
to
the
income
of
the
respondent
for
the
taxation
year
of
1951
the
sum
of
$3,000.00,
which
had
been
deducted
by
the
respondent
from
his
income
for
that
year
as
payments
made
to
his
daughters,
viz.,
Nora
Margaret
Torrance
Beardmore
and
Mary
Frances
Torrance
Beardmore
(Mrs.
William
Steels)
during
the
year
1951,
allegedly,
pursuant
to
a
written
separation
agreement
dated
November
17,
1939,
and
made
between
the
respondent
of
the
first
part,
Laura
Beardmore,
his
wife,
of
the
second
part,
and
National
Trust
Company,
Limited
of
the
third
part,
and
which
the
respondent
claimed
to
be
entitled
to
deduct
under
the
provisions
of
Section
11(1)
(j)
of
the
Income
Tax
Act,
formerly
Section
11(1)
(1)
thereof.
The
agreement,
which
is
more
fully
set
out
and
discussed
in
the
judgment
in
the
previous
appeal
between
the
same
parties,
hereinafter
referred
to,
provided
for
an
annual
payment
to
the
wife
of
$7,500.00
in
twelve
equal
monthly
instalments
of
$625.00
each,
and
paragraph
9
provided
that,
in
the
event
of
the
wife
predeceasing
the
respondent,
he
would
thereafter
pay
to
each
of
the
said
daughters,
during
his
lifetime,
a
sum
annually
of
$1,500.00
in
equal
monthly
instalments
of
$125.00
each.
The
wife
died
September
4,
1950,
and
during
the
year
1951
the
respondent
paid
to
his
daughters
sums
totalling
$1,500.00
each,
or
together
$3,000.00,
and
claimed
to
be
entitled
to
deduct
that
amount
from
his
taxable
income
for
that
year.
Following
the
assessment
by
the
appellant,
the
respondent,
in
accordance
with
the
procedure
laid
down
by
the
Income
Tax
Act,
appealed
to
the
Income
Tax
Appeal
Board,
which
on
November
6,
1953,
allowed
the
appeal
and
directed
that
the
assessment
be
referred
back
to
the
appellant
for
re-assessment
by
allowing
the
amount
of
$3,000.00
as
a
deduction
in
computing
the
respondent’s
taxable
income.
An
appeal
from
the
judgment
of
the
Income
Tax
Appeal
Board
came
on
for
hearing
before
this
Court
at
Toronto
on
May
27,
1954,
at
the
same
time
as
the
appellant’s
appeal
in
another
matter,
numbered
84251,
and
between
the
appellant
and
the
respondent,
who
were
represented
in
both
appeals
by
the
same
counsel,
and
as
the
same
points
of
law
were
involved
in
both
appeals
it
was
agreed
by
counsel
for
both
parties
that
the
arguments
in
the
first-mentioned
appeal,
No.
84251,
would
be
used
as
the
arguments
in
this
appeal
and
that
the
judgment
in
the
first
appeal
would,
mutatis
mutandis,
be
taken
as
the
judgment
in
this
appeal.
For
the
reasons
given
in
the
judgment
in
appeal
No.
84251,
I
hold
that
the
sum
of
$3,000.00,
the
total
of
the
payments
made
by
the
respondent
to
his
said
daughters,
were
not
payments
deductible
from
the
respondent’s
income
for
the
taxation
year
of
1951
under
Section
11(1)
(j)
of
the
Income
Tax
Act.
The
appeal
will
be
allowed
and
the
assessment
restored,
and
the
appellant
will
have
his
costs.
Judgment
accordingly.
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