Case Background: Satnam Mand appealed against the Tax Court of Canada's order which dismissed his appeals for the 2007 and 2008 taxation years and awarded costs of $7,500 to the respondent.

Key Issue: The central issue was whether timely notices of objection had been served for the 2007 and 2008 taxation years, a prerequisite for filing a valid appeal under the Income Tax Act.

Tax Court's Findings: The Tax Court preferred the respondent's evidence over the appellant's, concluding it was more likely that Mand did not properly serve the notices of objection in a timely manner.

Appeal's Focus: The appeal was centered on whether the Tax Court committed an error in law or a palpable and overriding error of fact or mixed fact and law.

Costs Award Error: Both parties agreed that the Tax Court erred in law by making a costs award without hearing from them on the issue.

Federal Court of Appeal's Decision:

• Dismissed the main appeal, upholding the Tax Court's findings.
• Agreed with the parties that the Tax Court erred in the costs award.
• Varied the Tax Court's costs award to a lump sum of $3,000.
• Awarded costs for the appeal to the respondent, fixed at an all-inclusive amount of $2,000.

Conclusion: The appeal was allowed only to the extent of varying the Tax Court's order on costs, maintaining the dismissal of Mand's appeals for the taxation years in question.