Arora v. The Queen

Arora v. The Queen
Court (s) Database
Tax Court of Canada Judgments
Date
2006-04-20
Neutral citation
2006 TCC 244
File numbers
2003-2341(IT)G
Judges and Taxing Officers
Ronald D. Bell
Subjects
Income Tax Act
Decision Content
Docket: 2003-2341(IT)G
BETWEEN:
AMRIT ARORA,
Appellant,
and
HER MAJESTY THE QUEEN,
Respondent.
____________________________________________________________________
Appeals heard on April 11, 2006, at Toronto, Ontario
Before: The Honourable Justice R.D. Bell
Appearances:
Counsel for the Appellant:
Robert G. Ackerman
Counsel for the Respondent:
Steven D. Leckie
____________________________________________________________________
JUDGMENT
The appeals from the reassessments made under the Income Tax Act for the 1998, 1999 and 2000 taxation years are allowed with costs to the extent that the non-capital loss incurred by the Appellant in his 1992 taxation year is carried forward and applied as to $8,662 to his 1998 taxation year and as to $21,822 to his 1999 taxation year and the reassessments are referred back to the Minister of National Revenue for reconsideration and reassessment on the foregoing basis.
Signed at Ottawa, Canada, this 20th day of April 2006.
"R.D. Bell"
Bell J.
Citation:2006TCC244
Date: 20060420
Docket: 2003-2341(IT)G
BETWEEN:
AMRIT ARORA,
Appellant,
and
HER MAJESTY THE QUEEN,
Respondent.
REASONS FOR JUDGMENT
Bell, J.
[1] The Appellant, in his 1992 taxation sustained a loss in the amount of $485,250 in respect of a real estate property purchased by him for the avowed purpose of reselling at a profit. In fact he sustained a loss in the above amount.
[2] His Counsel submitted that the amount of $323,500 was a non-capital loss and the amount of $161,750 was a capital loss. The closing date of the purchase was some two years after the purchase was made. According to counsel, because of the Appellant's inability to sell the property, he decided to change the use and attempted to rent same. At that point Counsel submitted that the property became capital property, resulting in the claim of non-capital and capital losses as above described. The only non-business losses available to be claimed were with respect to the 1998 taxation years as to $8,662 and with respect to the 1999 taxation years as at $21,822, the ability to carry non-business losses forward having expired in 1999.
[3] Since no capital gain existed in the years under appeal, no decision was made by the Court as to whether the amount of $161,750 or any part thereof, was a capital loss. That matter remains to be determined in the future if a claim for deduction of a capital loss from an amount of capital gain arises.
Signed at Ottawa, Canada this 20th day of April, 2006.
"R.D. Bell"
Bell, J.
CITATION: 2006TCC244
COURT FILE NO.: 2003-2341(IT)G
STYLE OF CAUSE: AMRIT ARORA AND HER MAJESTY THE QUEEN
PLACE OF HEARING: Toronto, Ontario
DATE OF HEARING: April 11, 2006
REASONS FOR JUDGMENT BY: The Honourable Justice R.D. Bell
DATE OF JUDGMENT: April 20th, 2006
APPEARANCES:
Counsel for Appellant:
Robert G. Ackerman
Counsel for Respondent:
Steven D. Leckie
COUNSEL OF RECORD:
For the Appellant:
Name: Robert G. Ackerman
Firm: Ackerman Law Office
For the Respondent: John H. Sims, Q.C.
Deputy Attorney General of Canada
Ottawa, Canada