CTA Case No. 129 (Decision)

PUBLIC OP 1 Plill.IPI'l".. ~ ( Oll \i ( l I Ai'PEAt-<;, -\ 10 M.!D A, � T ���� etiti ~"� CA E � 129 Re ondent. !}J/1. -;Jfbr' X� � ~� ~ - � � � ~ It a � t tit:l.oner � :tonio l ina rl d t ni ez during t e Jap nea oc- aa t1 , or rtf.cul rl or ut ay � 1944. efon 1946, t h apeu a h d nelt r pr peniea no% buain ss f thei~ � KOIHIN81'� 1ft 1946 eti� ti r df t cn th un.t- ci lit1 ln � b int p �in e of Is b l � t 194 � cu nd t1t1on r f% h c c ��1 � �en ld t diff r t persons in nil th hit ri no Oaort � In 1949. petiti er�s wif , Antoni � de edina, lle dly It d to ngo � ln usin��� 475

� 129 I a1 � 1� . a uly l1 a ct 1 ~ de l�r� p�ti loner, f 19A l 2� I ld t he l t all 1g p cf � I" d .. o~1o. zue- 1 ne the � 1 � ef 1 � ~ � � iti � � e t pe t r . G%' ep�a t 476

ISIOtJ � C. T. A. CA N � 129 - 3- d . oo, 1n edd1t1 n t the � <If ti n above. T � def1cieney �ale ~a� fro 194 19 2 �� !ved at ft r dis g rdln th les o cia by p tit1oner to hi� wife f bi d v id pur$uant to iele the C.!.vil o C rt. 14 � o 1 C~vil Code) d c:ons � �al a al ega y m e y i� a p iti . �~' � J:iginal taxable - ----of the atio al ln- c .. � a. p tit1 n r c t�t he h gxo d at 11 1c: p b sa a wi~ f bu nesa sep r t d t nc: ~ e hu d the t%an~ ~ti n , f � etw di fe w re ��tid � real and not fic;ti- t i 1.1 � 11 13, 19~ . e pen t ins;ist w.i .., na � � beceus ere w � n p t!cn o p perty ~r ~ in t ~ a 3 cial � par ~1on of erty bet en p � an c t t th r hib i ~ e ntai n d in icl� 1490 of � Civil C � n Jul y 9 � 19 � peti.tione.r a n f l a pet1t 1 fo r c neider tion t � aase� nt, al- 1rst ti that t re ~ist� pra- rit 1 r t c l t e ep� ~ i n �~~ t1 a ex cute � en h a hi� wife and that 477

-4 d 1c ey lea x d g inet f l <46 t 1952 pr r.lb d� � p'".............r 10, ~ . the C f ff f h Bur a � t 1' c i �r- t vi nc: p t ti e.r, f h th sa y put hi � 1n ye 1949 to 19 2 t s n evi ence uf 1c abU he exi t nee, d e xec 1 t nta of the - Xt l ge the ep u es. no.~te\l'e.J:, t a '� ~ le h rt x � 1n hi 8GC eel nt t lof � � � � t. fc �e :r , t r fe zo fr p dent, n ct ee w1 h fin n p 11 . t p y the judie! 1 t le� t the � <178

- � 129 t of th latter1 � all d p.nu li 11-itiee. eti't ag n x que&ted reconai "' ap d�nt'a a waa dent in r p dent' a lettez dat 4, 19 � t aati�fied itb the decleion f re nd t . etit.i el' � eal d t th a rt. 1~1 d � n t dis � the fac that if t I Of el" t his wif� are t is- r a d . 1 ~ au tin und cla.red sales f 1. 49 19 2 s ax 1a in t � unt Of S2, . 24 xb. 5 , � 12. B~ r � ). cc rdin - ly, th deficiency ������ t ae c vted �� ~ h tic�Uy cozrect. H ce, the in� atan peal a lnly, if not exclusively, ba d u n e p aition that . !nes dt as t e%e al- legedly w a a pr -marit 1 a re ent enter 1nt bet en p t tioner nd h1a w f � the a tr s- acti a between tl ap �� fr 1949 19'2 valid d at tt 1e 1458 of the old iv1 iele 1 the n Civil Cod � th ot r d, ti t.'a def nae ia ba d u he 1 th t th� �ales fie- tit1 �� ai ulat d lbe lasuea �� p en c fi �~�tl y be stat as lewat r n t t ex� exists � prt ri al 89% ent of a selut � an- ti of r ezty execut b4t the s ���� t1 na nd t nJ.a de in 1 d, aa- 479

� -- � � � n that xi ri 1 n th hi to his sal 1 stl. et:f.ti et w!f iet nt n It i p r, th � - n U ad v td c u 1 f �� Civ 1 vid lly icl � � t1ti I � t l' � nt 1n in F. t �� I 1v ( 1 � � � t � o� 11 36 , t l)� b ie ci f t ri in 1 1t1 t d t out he t 8 �11 t in t v th at otit1 n 480

-- c ri in 1 ... ~t � sc p iv t r g y � gin 1 1 t bn () � a y X C 1 tr ( ). n 481

482

- ...... � � 129 .. ee, it G\lld - t . vi zi �f .. et1tl �~~"' �� tog � 1944, �� that t tw � r - etitionezo and ls wife n at hJ.a � d ou��� en � into � ed f re notary ublic by aald � er w1tb th ir - -.1 nt alle ly cent 1n ep tion uture p erty in���� it Will � ��� it � ( � c. c.. .- � � )Cb. � J, � 11 - 123, � � PP� ,..,...,...,_}}5, I ne. ) n , th t � � in rt � � te �a fully a tinl in ce ef et ti �~ t p � t . 1 � � ecutl e ntents of u. ed .. � � fintl , tha n nc slaten h 1 � the 1n the t�rial � etiti er 1o 483

. 129 - 10 - ina and his wife tea 1�1 tMafo.re he J"usttce P � f l n, Is ela , th t n vln h l r a t 1 c ptl rty .- that h� � t1 ( xh. e 1� er, test1fi h t X th �in 1 ( xh. ;J , � BI c. ) 1 - � ot e l' r it IS S � 1f. hi ry ar 1, f r Cl r f ed Of Iaa th x.c t n ll �� c. t � � P� � 62-6 � ). 1' r a t hat 1 " i aUy 1 Of 944, 1 � y c l:lct 1 nt e � c ell � � lat t�r 1ng n is ~

o. 129 - 11 - I a 1 � who t &tifi that , if it er tru that .. - a :regi t red, t yb k 1 ina b ly tran act1 s 1n th fer d t~ h ar, includin l te 1944, and a preaerved, -d1 - el.e tt d cord he in ( � � � CTA r e. ).. le the test ny f v. 11 � he th t 11 d �i � inc e1 n � � t ti ni 11 .. h t tit! aeon ly, !t 1 n t i t t \i l r 1 , di n t in eth x:l. t nc e e ti the 11 9 l h fi:t t If') t' t . l 8 nly aft tt t h i nc - nt. f the is y hould h v n 1 t ne � y 1� is f d n � His t f t exist ne t\1 d c r ly ft rt 9 t . Thirdly d l tly, if it 1& tzu t � exists a it l ag ��P ti f pr J:ty that . the �pou��� , they shoul ve 1n :teUna.J:y cours� 485

�1 in � � -l - in ace r danee 1r r~m-..... , th t ia . lt � pe r th \ th pr"'�".... d ac- tbi r ! � usu rue tion iz p:r e 1�-s , pr ee f 1 a ed xelu ac:h of tb the con- tt' ry. j � � evi enc to � ef� f ct zg fti& � id p ��� p rln the t x l e y r 94 � 19 2. t � f ctu � d p ertl�s h 1%' �1 vrya- �� 1t rat! 1t1 th t � 1t h!a th lin 1 �� 1 � u f - 10.. )~ I als & 1 ti � if n ~" ~ 1nd r 1n f (� 10 - � e1 486

� o. 129 - 13- byth a nt fo~ .in h l of Utioner and not his if ' n al r-t 11 oecaeiona th r eds of uch 1s - d osit d in p i tl er� curr nt ec ln th hil!p in tion 1 in nil 5� - - c. ).t �� n. : - � 1~. � 1 r t nc eting of their Ulin ue t ... 1n Xilt c r l e is - t � ~ d� �n ~~r:. � 1 z! e 1 � vin n � � 1th i ern y th rtn � ce, tt t if � � � (1) are null, void and 1- xist ld, n in h t the d r tin nt ri , of th � p ��� t. ' � ' .j t � 487

.. 1 - ri.t 1 nt - .. 1 t en t � � th nt:rdit t� � 1 y titi n r t e hi ct i dn th t th ct1 n n h rn and 1 if 11 � l d t t� s nh hi �1 rei l end ir ct tn � ct th t t h h th t ll 1 nt d nt cl - t1 v b � t 1 it -; r h 1 el y i n 7. 1 0;:" 1 ctly 1 1l r i 488

489

c.r .S�I " � 129 - 1 ... n / " c n e tl t t � ttr n nd n n J.n r t - � 11 t v l i ity f the 1 th 1 , citin Co � v. f rl t th t ft ct r in fa f t x tt n, i 490

� 129 - . . - - .)7 � � �� 5 ' g. ..., 19 � � t 1& � l t X nd ;ur- � ici c Ch h r:r ctl d v 11 ly d � p ct t th tt c l ct f y f r hi 1- 1 � 0 not n nt cti ynt c � ti r d s v. Collect r .n � � � � 10, 1I 1c � c 1. ofl � � 1 � 19 � d. � � � Jul 3 ' 19 �� � v. � nt. v �� .27, 9 � � � � � -1 71 � ) i ' c: � k fr f t � fU%'- r . ird rf 19 2. ) 1 rt ci tin t� n r r fl91

� 29 -1 � p ent t t1t1 f r iew c t 1 � ti c cem he � �� t 1t 1� hea ~ t incr as rt y evidence~cit- ��� nt , .... t in c 11. Int. v. B t ng � T~ n jti ./xt J n. o , 195 Co. , � � � in y lle 1 1 n l unte :r ... � r fi - 1 r re ft the te r ns t� f t ct Oint . th l ave'\ 1 ci. th lty, th t th � � t �' ully d 1 dy r dnt rin t � 492

c.t 1. -1 - end cy of 'the ea � in hi offiee. Th ~ nee t f f n ure u of nternal v ue ich evi the o inJ. n , nd qu �� � roc s on nt d th p nalty a el1rd.net d f~ fi l ~a,�nu~:.at hlch 1 th ubj ct th1� 1. Th deeis1cn led f s.s he by ffi � exc t w1th eapect t the d .oo a ll d co ro p titicner. ct t t f ud �na ty in th nd 493