Is there any case law supporting the claim that there was no business at the time of the transaction?

The Respondent has taken the position that since the transaction was never completed, i.e., the laptops were never delivered, that same is evidence there was no business and relies on Vankerk v. Canada, 2006 FCA 96 […] In that case, however, the investors purchased units in partnerships that were found not to have carried on any business activity, with their investments siphoned off by the two individuals who perpetrated a scheme to defraud investors and Government by soliciting investments in fake partnerships. In paragraph 3 of the appeal, Sharlow J.A. stated: 3 … This is a case where, in fact, there was no business. There were no business expenses. There is no factual foundation for any of the deductions claimed by the appellants. …