Law360 Canada (June 12, 2024, 2:48 PM EDT) -- Appeal by TPine Leasing Capital Corporation (“TPine”) from Tax Court’s decision allowing amendments to Crown’s reply to include alternative argument or basis, arguing whether subsection 152(9) of Income Tax Act (“Act”) allowed Minister of National Revenue (“Minister”) to rely on alternative argument or basis. TPine was in the business of loan and equipment financing. In its income tax return, TPine claimed a deduction for the cost of goods sold and a deduction for capital cost allowance (“CCA”). The initial assessment issued by the Minister was based on both deductions being allowed. TPine was subsequently reassessed to deny the deduction for CCA, and a penalty was also assessed. The Minister viewed the assets included in Class 10 and Class 16 on which the CCA was claimed included the same equipment that TPine had sold, the cost of which was deducted as cost of goods sold. No adjustment was made to the cost of goods sold that was claimed by TPine. TPine appealed before the Tax Court. The Minister subsequently reassessed TPine to disallow the carry-back of certain non-capital losses. Following the filing of replies and exchange of lists of documents, the Crown brought a motion to amend the reply. The Tax Court judge allowed the amendments to the reply....