ON APPEAL FROM THE EXCHEQUER COURT OF CANADA TaxationIncome taxProfit from real estate transactionIsolated trans actionWhether capital gain or incomeIntentionIncome Tax Act

himself with one in the purchase of parcel of land with the inten tion of dividing it into lots and building houses thereon Because of differences with the appellant terminated the association and in 1952 sold some of his vacant lots at profit FIeld The profit was taxable as income The arrangement between the two associates was an adventure or con cern in the nature of trade within the meaning of the term business as defined in 127 of the Income Tax Act 1948 The subsequent sale of the lots by the appellant was not merely sn endeavour to realize upon an investment there never was an intention on his part to retain the lots as an investment but rsther to dispose of them if and when suitable prices could be obtained An individual is in different position from that of company and may not be carrying on business when he sells investments and buys others but the profits from an isolated venture may be tsxed as well in the case of sn individual as in the case of company Smith Anderson 1880 15 Ch 247 Edwords Inspector of Taxes Bairstow et at AC 14 applied