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Atlantic Engine Rebuilders Ltd. v. MNR, 64 DTC 5178, [1964] CTC 268, aff'd on different grounds 67 DTC 5155, [1967] CTC 230, [1967] S.C.R. 477

In order to secure a regular supply of rebuildable engines, when the taxpayer sold engines which it had rebuilt to Ford dealers it required the dealer to supply it with another rebuildable engine of the same model, and required a substantial deposit to secure that contractual oblitation of the dealer. Thurlow J. held (p. 5182) that all such deposits were receipts of an income nature because "they arose from the appellant's trading transactions of which in each case the deposit formed a part" - before going on to find that the taxpayer was entitled to a deduction in respect of its liability to refund the deposits.

Dominion Taxicab Association v. Minister of National Revenue, 54 DTC 1020, [1954] CTC 34, [1954] S.C.R. 82

Taxi owners contracted with the taxpayer to pay the taxpayer $500 per taxi for the privilege of operating their taxis within the taxpayer's association. Rand J. (who concurred with the majority in allowing the taxpayer's appeal) held (at p. 1020) that the $500 contributions:

"were obviously to enable capital assets to be acquired and were limited in their application to that purpose."

Accordingly, those deposits were not income.