Canada affirmed the judgment of the court appealed from rejecting that claim, on the ground that, prima facie, the bank's liability for these costs resulted directly from its own fault and nothing in the letter of credit authorized it to put upon its customer the burden of a disbursement exacted from it under such circumstances.
Louis A. Pouliot K.C. for the appellant.
Chas. Mignault for the respondent.
IN RE THE WALLACE REALTY COMPANY
LIMITED
*March 13. *April 10. THE WALLACE REALTY COMPANY I
APPELLANT;
LIMITED .........................
f
AND
THE CORPORATION OF THE CITY
RESPONDENT.
OF OTTAWA...................
ON APPEAL FROM THE APPELLATE DIVISION OF THE SUPREME
COURT OF ONTARIO
Income assessment (municipal)-Assessment Act, R..O.,
1927, c. 288- Ascertainment of "income" (as defined in 8. 1 (e) )-Allowance of deduction, from company's gross revenue, of sum paid for interest on moneys borrowed for investment-Exemption claimed for dividends received on shares in another company whose revenue derived from real estate rentals-Deduction for overhead expenses; proportionate allowance, having regard to amount of non-taxable income.
The appellant company's business, carried on in Ottawa, Ontario, included the leasing and managing of real estate owned by it in Ottawa, and the buying and selling on its own account of stocks, bonds, etc.
In the year in question it derived a gross revenue of $12,288 from rents (exempt from assessment for income tax), and a gross revenue of $27,091 from dividends and interest upon stocks, bonds, etc. From
,the latter sum it claimed, in respect of income assessment, deductions or exemptions as follows: (1) $8,004.83, being interest paid to a bank for money borrowed to pay off a balance of stock and bond purchase price and to buy certain bonds; (2) $6,622, being dividends on shares held by it in another company, whose revenues were derived
CJ.C. and Duff, Newcombe, Smith and Cannon
JJ.
4379-4