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TMI Blog1953 (2) TMI 55X X X X Extracts X X X X X X X X Extracts X X X X ..... ncorporation as well as other persons who are or may become members of the corporation. Among the purposes for which it was incorporated were the following:― 1. To purchase, assume, take over or otherwise acquire, all or part of the assets, rights, franchises, concessions, privileges, and to succeed to the business known under the name DOMINION TAXICAB ASSOCIATION by acquiring all or any part of the assets, with the goodwill and all rights and contracts passed with the said DOMINION TAXICAB ASSOCIATION. * * * 3. To found, maintain, establish, services likely to benefit members of the Association. * * * 8. To purchase, rent or otherwise acquire, all or any part of the property, franchise, goodwill, rights and pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tent mutuellement au transfert dudit d p t un nouvel acqu reur. La Dominion Taxicab Association s'engage consid rer ce droit d'entr e comme un d p t sur lequel un int r t pourra tre pay quand le Bureau de Direction le jugera propos. Je, soussign , d clare avoir lu et bien compris les termes des pr sentes. . Membre It is the submission of the respondent that the sum of $40,500 is profit derived from the appellant's business during the taxation year and so is liable to tax under the combined effect of sections 2(1), 3(a) and 4 of the Income Tax Act. The expression profit is not defined in the Act. It has not a technical meaning and whether or not the sum in question constitutes profit must foe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ndicate with any precision the respective, rights of the parties in regard to the sum deposited and particularly fails to make clear the circumstances, if any, under which the member may require the return of such sum, all its terms appear to me to be inconsistent with the view that the Association acquired any absolute property in such sum. The second paragraph of the contract shews that two conditions had to be fulfilled before the absolute ownership of the deposited sum could pass to the Association, (i) the member must have left the Association, and (ii) the parties must have failed to agree on a satisfactory successor to the retiring member. If such a successor were agreed upon the deposit would be transferred to him, and, presumably, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the services it rendered; no question of a deposit arose. For the above reasons I would allow the appeal with costs throughout and declare that no part of the said sum of $40,500 was assessable as income of the appellant in the taxation year in question. Rand J.:―The appellant was incorporated by letters patent of the province of Quebec and among the objects were:― 1. To purchase, assume, take over or otherwise acquire, all or part of the assets, rights, franchises, concessions, privileges, and to succeed to the business known under the name DOMINION. TAXICAB ASSOCIATION by acquiring all or any part of the assets, with the goodwill and all rights and contracts passed with the said DOMINION TAXICAB ASSOCIATION . * ..... X X X X Extracts X X X X X X X X Extracts X X X X
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