Rouleau, J:—This is an appeal by the plaintiff from a decision of the Tax Review Board dated April 21, 1983 whereby the sum of $101,000 was disallowed as a deduction in computing plaintiffs taxable income for 1977.

Joyal, J:—The trial of this action was held in Toronto on October 9, 10 and 11, 1984. The issue was the deductibility under the provisions of the Income Tax Act of a payment of $405,000 paid by MerBan Capital Corporation Limited