La Forest J.
La Forest J. -- We agree with the conclusion reached by the Tax Court and McDonald J.A., the dissenting judge in the Court of Appeal, [1995] 2 F.C. 433, 95 D.T.C. 5168, [1995] 2 C.T.C. 86, 179 N.R. 363. In our view, in the circumstances of this case, the property retained its character as inventory in the hands of the appellant.
Accordingly, the appeal is allowed with costs throughout, the judgment of the Court of Appeal is set aside, and the judgment of the Tax Court, 93 D.T.C. 1449, [1993] 2 C.T.C. 3189, is restored.
Cases cited
- 2 F.C. 433 2 F.C. 433 ¶ 1