CTA Case No. 3486 (Decision)

REPUBLIC OF THE PHILIPPINES COURT OF TAX APPEALS -CKJEZCJN CITY CHINA BANKING CORPORATION~ F'F�' �1-. .i.. t .i.�:�> n C' r. ~ \.'F r ��:�:; :.. \ �::�. C. T.A. CASE NO . 3486 THE COMMI SS IONER OF INTERNAL r:;:EVE t\IU E , DE C I S I 0 N r h t�:� qu.c �;:; t�. :i.. o n of t h R ~mou n t of �fnt.. the .:..,_ d 'l ;�,. n c: E' d b y :i.ri t �.f..' I' �<'�:!�;j �I.�.P el :i. n h a v :i.n CJ t ..i.. t l ~~ o f th E~ p r �o p E.~ r.. t �. ';/ 1�: Ul 'l <;:;(�' 1 :i.. (:1i':1. i".E1d :i.. l"l i t s n a m e~ ~ s t h e t ax p a id i l le g a l l y a~sess e d

DEC I ~:; I ON CTA CASE NO. 3486 2 by c l'" ~"c'Ci .i t:. nr��.... () �f (no~.! ~~ f0 ( :: t ..i.CJ I""I :~: !J :=:: ) oi' th e t�J .::J. -1:. �' �o n i�:\.l I n t .c:> t'� rJ .,:.�:. l F~: c'\'f:~ n u.F' r.:u cl c'"=' c1n I:JD.�:o: .i.. ::; of p1 "F'::;c: l �l t .c?c:l .:,1. r��r? : 1 (;.~ q i:l. 1 �':).q F' ~ L. .i. l"l g �'=" r 1 c1 c! r:.0 l F' 5. 1 ,,,,.. f:) -1:.. 1�� F'f:~ t. :� t�1::.l. r"l .i. 1 :-.1. :� c~ :; L'C 1..\ I.:C'! d ( E :-:hi. h .i. t. "t'1") �i. n "f i.\ \'CI I��� Cl "f pc t. .i. -1:. .i..() l "l ( �:~ r�� Cl\'C' I"" i1 f:Jc:\ 1��� c E' J C) �f J <'~. 1 �1 d ~ u f T i.. l:. l c No. 1�.1 "1.1<::01~� (E�~ ::Il:i.b.i.t "D'') c>f t lv :� F{e qi''> t~r- n r :l �f f�c (�! ( :!~::; fur � t J�H.-:�.� F' r� C:J\:' .i.n c C:' u �f Riz 0 l to s ecure the r' :�1.'y" inr:~r l 1.. �:' f �i.:.J�1c .i. n d ~ 'b "i.:F' <In r~�,:; �=�� of tho Sd.i.rl mortgagor ( pp H ~:~ ~� � TSN of 10 - 16 - 85); ..'''_\ The�~ �;:; a . .i.d mc1 r� t�.q �'�'�go i'". .in .:: " p ..:C:l.).' ill f-:: 1"11:�. h:i.::; nhl .i.qi:\ t .io n c:; t.o I:.h e p t) t.i ti.Df1fC>t"" Co n se qu e ntly, th e �:::; ;:,,.i..d pi �upct �� t�/ (~ :: t.r� t�\ .:i t.f. d �( c :.i.. ,::1 J. l '>' hy n '' ) U. pon pP t . :i. t:.j_ Url (E .:�~ i�l .i . h :i. t ,, i"J f 3C3

DE C I S ION CTA CASE NO. 3486 petitione r herei n , �for� ~ppro pri a t e Certifi ca te of S~ l e (Exhibit , ".."....)".7 ;;;~ n d .:l.n n u t.i:\ t .c-:d / r (;:q i ::; -1- .r:�! r �c:-~ d o n T. f'' T.. i') o. r-.1� -- .l. J OJ 5 ( E :< hi b :i. t IJ II II ) June 6, 1 979 as En try No. 40198 /T-No . �-..:;� ' pi �� up.::~ r �1.-.y ~-~:i t .h .i.n to t .hc:� ( .1 ) f r om Jun e 6, 1979, t�. h e ::.;~ :i. d pr opE' r � t .y lt�! iOl. ''..> c:u n <::>o l .id<:~ �i.:. c::!d .i. n t. hc~ n c.~. rne o f t h e-;� h e~ I''E! in 'IE" <:J. nd " F " ) n1 �1 .July 1 7, :.1. 900 .. l ate July or ear l y to t.he L: I..I. I 'Ei.':\ 1..\ u'f' ~Jul y 9, :1. 970 ( F::: l�l.i.. hi 1�. , ,..,II) by 'Bih: D.C." Office N --�I.J.OB 56 ( E :< h .i b :i.. t. \It:; II ) in t: l�l,::: f'li:.\!Tl E-) o'f t h ;:' p E�t .i. t.i.o n f:.!l.-� (pp . .1.1 �-.. 14~ TSN o f October 16 , :1.985); q u~G ,

DECI~3ION ����� CTA CASE NO . 34 86 -� 4 - 11 ., F' f-? t .i. t. .i. D n t:::~ r � ' ~; man a C:J E~ t-� :::; c h E~ c: k ( E :-: h i b i. t H 11 11 ) which was used as payment for the capita l gains tax 0 nd which was issu~d by petitioner on the ba s is or �3 1::. ;� (-~I l CJ -J:: h Ci f ( r:: :< h .i. b i. t . I II II ) d ated July 9, 1980 r� ,.::�c c� .i vt:-~ cl hy Que~on City as shown ����! i t 1�1 t �. he:� i t rlr:::�po�::;i t.E�?cl 1-?.c:l. n 1:: ( F ~-: hi b.i. t '1 H ---::=~ 11 ) - �.:. F' hi 1 :.i.. p p :i. n c~� N:.,\ t :i.()I ., ;,1_). (pp . 15-19 , TSN of October 16, 1985); pt:~t:i. t.i.. c::ol �l '? l .. 1 n �=;; t 5.�::; "">t.t.s d by -1.-. hE� Uu r �p ,-:l.t.t of In t.e r �� n <':\ l F\f=' VE'rlUE�~ n f U�..t. F! ;:-~ o rl C .i. t-.�/ i�~ nd despite diligent effor t s, th e "'�.::Ifni�:-:� Ci :!t...t l i:l nut. he �fuunc:l. (pp. 19-20, 27, lSN of fJ~::: t.~ iJ h >:�? ,... j_ (:,' lCJn:=:i; PP� 10, TSN of Jan. 28, hol c:l of a. co p y of F\evE�? nUi"! Memorandum Order No . 33-�8 1 d ated No ve mber 19, 1981 (F::hi hit 11 �.:1") express ly pro viding th at t h e pa y men t Clf Ci-.l.pi t <~ l on conso l idation of property arj_si nq from ex trajud icia l f oreclosure exc lusive l y

DECISION CTA CASE NO. 3486 - 5- the debtor - mortgagor a nd nut on the~ creditor-mortgagee (pp. J. LJ. ���� .l ;_:,, , De: tu hf�:! l-� .�.I\.../.._.. :1..90::)); !3 u.b~5E?qUi.:.' n t 1 ''/ ~ pr:::'t..i. i:".io1�1er-� on c!une ,.., ' I �..::.~:. !'i the office of the ,~r:.-?~:; p on d e rl t �. ""� f o r�� rn i:\ l demand or c l a im for r��r:!fund of the payment of the (pp. 21, 22-23, TSN of October 1 6, 1985); 0 res p o~dent failed t o takE~ a n y �.�./ n petitioner 's c l ai m CJ"f' t h f:? t .h E! C:dp .i. "\:.<:.\ J. (F:-: h i h i 1.:. II ~::: II ) !f pF'!t.i. t:i..one r� o 1�1 ."J u J. y 6, filer:! the-? .i.nst <,, nt p.:=0t.i. t:i.on '.-�Ji 1:.-. h thi s Honorab l e Court (pp. 23-2 4, TSN of Octobe r 16, 1985); 9. Du r ing t h e ttial on t h e me rit s, p e ti tio n e r p resented t wo witnesses .in tht:'! per��~; on~:; of Atty. Dm<"'r � D. ') i.: 1 �.i.. :t. i .;:\ , i (.)�o:;~; ~;,tan t C h :i.e f L e g <::l. J. Cuu n se J. o �f pe tition er an d Mr . Hil ario Garc ia, Junior Cler k in t.: h E1 I....E:' (]<::l. l pE�? t".i t i. onE' t-�, v~ h o both the var i o u s d oc umenta r y evidence presented dur i ng the trial. defen ses ,

- ..... DEC I SION CTA CASE NO . 3486 - 6 -- t�.l c~ 1 !. ��� � <;::.r;~ t t.l F:.' d :!..<.; c: or1 c_; t r�� uf.0d ~; -1::. r-ic t 1'/ c:\q a. j _n ~; t. t. hf'~ in ta:-: J n .,:~n action for refund, the taxpayer has the C: U J. J. E'C t.c~d i':\n cl f "''�.i. 1 u r��E� to do so fatal to sa id action for refund; J t . i ~; .i. rl C: I..trn bE;~n t Lt po1�1 petitioner to show that it. il <.�,�::;; c:ompl f~c:l >�~ .i.th 1:-.h i::�.' pr��uvi �=.:;ion�=.; of s(;~C:tions ::~9::~ National Jnterna l J.c1 77 ~ a c,:; .:.;~mf"flclr; ~d; In a n t-�p fund ~ t 1�1p dE:\ t.e cJ f pc:\ yrnc:~n t exactitude and failure to do �: c:r:J .:i.. �,::. �r <�:1. t <�:'.1 t .o <:;c:\ i d c 1 a .i. rn fur�� r��E' fund ; 1..�.1.i.. t huu t. <J.dmi tt.i.nq, that: .in CU I �\ �:=:; u 1. i cl d t-.i Orl LJ �f frurn extrajudicial liability fur the payment of t:hr::? r:: i�:\ p 5. l .i~. 1 q d .i n ~::; u n the debtor- mortgagor, hO\A.If::'VE'r��� ~� ":5<3. .i.d l.i. <::\h.i. 1 i ty m<'J.Y va lidly he shifted to an d a ssumed by th~ creditor-mortgagee, as i t is the ir1 h.:::~v i ng pnJper�� t.y consolidated in its name; - ..

DECISION CTA CASE NO. 3486 -- 7 - t h i':\ t t l'iE' ca pit a l ga1n s tax .i.. n t ( j l...\ f:~' �;; i u r1 b y p e t ..it .i.. (}n c-? r. ( c t'e d .i. to,. -.... ff'ICJ!"' t~ q t:l. fJ C.'P) i:.h e P"' .i r:l in E:\C::C::Ot""d t1. 1'1CE� \�~i. t.h J.~s a. waiver of hi s rig h t to c J. i:\ .i. m t. hr �:~ r �F~ �f ur1 d f t"�o rn t"'E'<::; pnn c1 r-~ n t . F' r-:-?t..i. t . .i..f:)l"l('~ '-- <::~ n c:: fl CJI"'':; �for � l'" l;? fund on Or"d-21' ' l\lo. 33- 8 1 d a ted No ve mb e r -1:: 1�1r-:-:� -1::. h :i.. r-ei p i:.\.I' ' .::\c_:) r- :D. p 11 t h r:> ,.�� c,~o f ~= t <:\ t .E�)''" : "J t \'li J 1 bf'! noi.._f:2 d t h <1 t. Ltnd e t-� th e fo r�f:�) IJO :i.n (_J t .1�� ,').!"l ~:;<:JC: t ..i. cwr ; -!.-.I'll:�) c:: .=:~. . p ita l q ~3 i n <::; 'l.. ,'.l.)< j _s:; [ 1<:'. Y �''' h 1 r-,:! h y -i.:. l l f�:~ d eb to ,.....��� rno t... t:c:.l a rJ o ,.- h r:.:c<..l. r..rs r:�� .i. t i �::; I.:'. h e p <H� ty nunna. l l y 1� -.!,'-~ 1 .i. zing -1-:. l�l r-2 in c: urnr.-:-' un ,:,,.c: c ou r�1�i-. u 'f th e <:;;::~ l !? o I"' di s pu s j t i .o n of the c::a p:i. ta l asset. S u c::h i. ,., r::n rn r-:.� .i.. <�; t �c' <J. l :.i.. ;�-: (:~ c:l .i. f t h r' p r-r �>c: PE�cl �::. o f t h r::� 1 c> <:.\r 1 i'' :-; (�: r�:�~ f�'L1 t l� lf:~ c:: us '1.:. o 'f t hr? p ;' �o pe,. - t )i nH JF"I:.r.;_:)i':l. �.,_:p :~d.. {)JFJ it. :i_<;:; pr.. r:~~;; r. :r. rn t\b l y fur � t h i s q i:) :.i. n d.-: � ;� :i. v c-:' ci t. h ,:J t t:. l�tr� rn u ,,. �l.�_ q aq o I' �.... d i:-~ I:Jto,... d j _cl 11 r�>t . J:�k'. ')' -t- h e~ 1 u ,�). l"l dl"l y rno 1��"E~ .,:~n d <:~ 1 1. U\�J F~ d t h e f( �q �r--'r:-: l u �:3 r..r.;�. ��::�' uf hi �::; prop c�! I��"Ly; .?.nc l h r.-~ rJj .d !"lrJ i. . .:,~. J <:n IJ rJ I:. I"JE~ ''" t:. u f .i.. J e::� t h e� l''f'? t t.r. t-� n E:\nd p c:l'/ t .h r:-~ t :-J :: f o !' ~:; r...r.c h rJ -':.l..i. n � '' l;.) r::-~ f j_ ,.,d nr :1 f'lF'r�:t. .,.._ :.i.. n pr0ti �i:�.:!. onct�� ''" c:<':l.~:;c-?. ( I"'OY.I t ~:; r;.~c:: .i. U l 'l ~? �1- ~; ) 0 �f t. ! r E~ N c\ t. :i.D!"l c:\ 1 I 1"1 t. c-=~ )�"' I '\ c\ J. r-:c~� v r;?n u e Co de , t-. 1�1 (:~ pE�.~ t.. t :.i 11r:-~ 11 t . po r� t: j _on o f r,�Jil :.i.c h r-r:-},'::\ d :.; : ~ec. 292. Re cover y of tax e r roneo u s ly or i ll ega ll y c:o ll ectecl.- No �::::.t .r..i. t o !'" pI'"DC: ec�c:l .i n !J :; h ,:':l. l J. be-:' rna .i n t ,,_j_ n r,>d :i. n <'1f ! }i C: O I.J ,... "1:: f 0 I'. t .h E�? t'" f.-?C: 0 '/E~ t'"Y 0 f a n y 1"1 E~ t ion<::\ 1 i nt.er�n a l revenue tax h ereaf t er alleged to i�t<'!.V t' b Pc:-~n F�r� r.. onr:�ou�:::; l 'i o;�.. i l l f.-? g<J. 1 J. y -co\ 'c3~:;r::;~::. c;; r:-: c:l Dr- C: D 1 1 E~C: tr0 d , 0 t'" ( J �f .:-:\r-l y p E! rl o:\ J. t ''/ c: l d.:i.. m P cl t ..:::> h a.../ P hE!f-2f1 co l l F'Cted \�d . thut.it 3C8

- DECISION CTA CASE NO . 3 486 - 8 -� t\ 1..1."\:.h (:>r �:i. -l::.y!, o r�� of any s um a ll e g ed to ha ve b een excessive o~ i n a n y manne~ w~ongfull y c:: D J J. \-? C: i_-_ E~ r:i !t l...t n t .i 1 a c l a i m fo~ ~ ~f und n~ credi.t has been duly fi l ed with the C (:> rnm :i. <::;~:; :i.. o r-1 c-~ t-� ; but. �;; u.c 1�1 �c:i '...l. it. or�� p ,... u c: ro! ~-? cl in CJ m.:,:~�l he' ma:.i.. nt-.a i.n c d, ~�-Jht::?t tl r::~r�� or�� nu 1:'. <:o LlL h t~x 5 pena l t y, o~ sum ha s be e n p<.:l. :i. d Ltn r:l e t- P''.. otc ~�:::;t oi��� clu. I' � E~ ~;:;�::;. f.lr::l�:c l�- t�..i..n(_;] t�.o the te~m s of th e law, i t i s ve ~ y national i nt e~na l .1. �;:; p 1 ,':l. n ted on t:o n c:!:i.. t:.i.o n t.h;�,,t. t. hP t <.:l. )�: must h ave been e~roneously Oi'' i 11 (7!qi:'\ l l 'f co 1 l (7?C: t e d � Th P �::;ti:'.\tut�.ra F-~ mp 1 o '>,. �;::. t. h r;� hereafter a ll eged to have O t"� i l l CiJ -0::\ l 1 ';' o t�" �..: D 1 1 E'C: I::. eel " ..... nothing lf'IU!'E! .. Tht-? <:IC: c:: :~n t .i. <;; on t. he :i.. l 1 C'] -3. 1 J. y p :1. )-' ~:; D t'.. 1:� :-~- ;.; V�J h .i.. c:: h .i.. �::; t F'�] a. l l. ':/ a nd lawful l y due a.nc:l p a.y<:lh l c t.n th e-? not E::� nt..i.tlE~ d to r �cc: U\/C~ r-y o f i J.J. t-? (] i:':\ lly C: 0 J. l E!C: tf-?ci � Com rn .i.s<:. ion e r- of Int e ~n a l Re ve nu e si mpl y ~efunds taxes which the l a w mu s t not assess o~ C:U 11 f:? C t. He is not. i.:.o t-� c~ �fund ' t <'~ :-:es I�~ hi e h and r� :.i. ghtl y h P lnn q to tl�1e go ve r�nmr.-?nt.� 3Cd

DECISION CTA CASE NO . 3 48 6 - 9 -� ll e r� c:� !' .�i. n petitioner s impl y F' l r,~c 1.-('.:cl t�.u p d 'y' t".h E~ ~�~hic: h l. t:\ lt J"fi. .I. JJ y .,,,_ncl l P qi.'l l l y du e-~ r��E�s pondcnt: Corn rn :i. ~,;~; ion E! t"" o �f for c onsolid~tion o �f i t s t i t l e E� :-~ t. t... <::l_i ud i c i ;-,\ l I �f <:\ C: F't" "t .c.l. :i..1"1 r �F~V fc:�'f"l I.J C hint ~.::; th cl.t s u ch debto r - mortg a gor, ..\.<;c, by �,-,; hou l. d C] <J' .I...I. (Jf�~ c:l by p ,.��ov i ~; :i.em i r-1 th e J. <H'-1 !JC.? r� m;;,\n E' t:o .i. -1:.~3 C h! ).i.. CE'. Bu.t �::; ,_Jr � �~~ l y n o t .i.. t. o r � ili.F~q �3 1J. y i <;;; c: 1 F~-:'!.1 � � If i::~ l 1 t���E! <; ponden t , [:'E~ l :i. i:..i 0 1�1(o~ t��� <:3 h Ut.I. J.d n ' .i ml�1u.r�� <::; E~mc~l l t "f ;� �� �.:m1 1:. h e:� rn u ,... i"JJ iclfJ o r� ���- d E! b tor � ., ti n d mu , -�� ~-:-~ i "1:. i s th .,::~ t r �c� f,__,nd of l.: d:<r::c~::; undo ,Jbt E?d 1 y p <:'l. l'" ta. k c~ �::; of th r-? rii:1i.:Ut"""L' c i:\ l""l f"lCl t. b E' J. .::1.11 q u.:_,\qc".�. v<:;. {)uc:l i tor�� L ����� l 7HHU:, Oct .. C J. ;,~..i. rn �:; for�� c: n n "-' t".r�u E?d .,,; i. 11 c: c~ .:;,_ c:: J ;::~ :.i.m f o 1�- <::\g a .i. n �;:, t. i n t. l� 1 f:��~

DECI S ION CTA CA SE NO . 3 486 - � 10 -�� .:-:� :< ;_::� mp t�..i. u n �f" t���c:im t D. :.; "'' 1::. i Un � ( Comm iss ion e r of I n t e r n a l L e d es ma , L - 1 75 0 9, ,."J i:Hl . ::=~ o, 1 ?7 0,, :~: 1 WH EREFORE , f inding p(;~ ti t:i.on �f ot��� V�Ji t h u u 1::. m .c -~ t��� :i . t . , t h E~ �;c,a_ fn('o' :i.. c,:; d .i.. :'; m .i.s s:; f.? c:l .'.J. n d �1::. h t:~ n::~ f u.n d sought i s here by den ied , a t pe tition e r 's c o s t s . ~:; cJ DF~ DE: F\ED . --------~/ ILLER ..Ju d (] f:�? T c:UI\ICL.IF\' :: ( d i~:;�::E� nt�::; :i..n '"� f'~ p -:::~ r�c:,l. t. P u p.i. n :i.o n) CONSTANTE c ; ROAQUIN {)�::;�'30c :.i c.�. -!:�.(�:�? ,.'J uc1 q r-~

DEC i f:3IO N CTA CASE NO. 3486 �-� l .t -� CE RT I F I CAT I 0 N J hF:.� r r:- l::.~y t.h D.t. t .h .i..<:::. dE:-~c:.i ::;:i.. on .!..::.; ('!r� t ..i.c:lr'.~ VI II of the� CorJ �::-:; t:.it.L!t.i.on. AMANT E F'r� t:~sidi �lfJ .Ju.dqec Cou~t of Ta x Appeal s

REPUBLIC OF THE PHILIPPINES COURT OF TAX APPEALS CIU EZCJ N CIT Y CHINA BANKING C ORPD RA TICJN~ F't?+: i t. :i.nnr,~ r�� ~ --� 'IF: r� ~::. t..I<;;:. C.T.A. CASE NO. 3 486 THE CCJMMISSICJNER CJF INTER NAL REVENUE~ - ..... �~�� -��� >~ .:. DISSENTING OPINION Petitioner China Ba nkinn CD v��pur� .,., t ion CUIIl fllE~I'-C:: i D. l h ;,�!.l l k �.i.nq c::orrur~tiun duly urqanized and T .'<.n h ave exec u ted a real estate mortgage in f D'/0 1'". u �f p e tition er C hin a 8ankinq Corpnratiun over ''''� p ;::t r� c::r?l uf ! ;,;~ r�, c:l, c:uvc' r��t:�!d hv Tl.:.: �r i' lo . 1\1�� - t �I O"I.'j uf "1::. 1��,1? F~ F-' Cl j co=; t:. r�� v Cl"f DE! E�cl ~;:;. C) "f r::: i ;: �::":1 I t u c.:; E:�c:: 1.\ t " 1::�! t .hE:� p ,:�i. \/il)CI""l t �. 0 f Sa id mortqagor Ta n C h enq Lenq def au lte d in the pc:tymPn t of l�t.i. �~::. ind c> bt:. E�:d r�, F?<:;<;:.; to thE' hE11 �,k dnd �s cJ hi s Fe! ;; "\":. r� E\ _:i U cl i C: j ,;:~ J J '/ f U I'"" C!C: J 0 c.;:. E!d ~� UPUI"l

DI SS ENTING OPINION CT A CASE NO . 3 48 6 ,...:.:, c'\11 (:1 ~"'�U I cl <�>. Uc: t.inn un (;p,,.. :i..l ..'":_.i','7 ~ < r: ;: h .. F 62 :'.', :::.;:.::;u. oo <::~ t. ,Ju r lF' .~, , :1.'77";' �i. n F r1t.r�y l\ lu .. 40:l.'i H .. (F.>: h.. n) -f i:" j l UI' ' P n-f <::;t:~:.i.d mu t�� tq.::lC!D I��� t .1���,f:�' p r �o p pr��ty \-'.1 :.i. t.� h i n (':';\ ,,,.. i cl ~::; ;~). pr r-:1 P E' ,,..t .�y 1/-J.-'::\ ~:; Y~-'::l. c: J d t P el un ~::;.C)j (�::). i 1'1 t . hE' n E:'l.fl'! E�' ,., 0 �f hr-:�~ J��� r�:� .�.i. , PF''� t .i �I� i o n E! ... un c ;�,; rJ :i. -1-�.i''' l n '''' :.i.n<;:;. t:\ fllOU.r\ l. r::;.; v , 1 �'!. t-.F� ,J �.�. 1 J.. Cif.l O ( h " 1���1) ~ �'"� <:;; ,..,,\! �.i d (:0 rl c !::~d h �y� p C' t : :.i t.:i.n n r:�:� ,,.. <::; 1\lo .. cl�. � 1. y ''�:�r 1d n ,.. ~:; F�! d thr�:�~ uff:i.c:t.:�' 1-1-�- l ) " Petiti u ne~ s rn anaqP ~ s c: hE�; c k ( F :: , , " p ,:,; yn1r-=: r �ot . f 0 1���� q a :i.n ~::; t <:>. >: i::~ n r::l ~.., h �i.c: h t 1���,,. ''' 1.�� ,�. r:�;n q t .h ' / DUC h e; I,.. F' E:� l . :.i. t .i ("' I l F:� I'" ' <;:; J C: i':l. :\. fll t h i��\ '1:'. t h r�,, p d �;~ m~::�n t . u f l:..h F: a s c: reditur - mu~tqaq ee cun s .iclerinq th at, in t:. h r::�; u�f cu n <;:.ul�.i.. d,::l t.i.u l�l uf t . i. t �. l e .:':\ r � �.i.. c,:; inu fro m ext~ajudic:id l f U ,.... '::; 1::: J Cl <;:. U ,... f�::� , t .h C ht .�.,.. d f�~ rl n �f [.:' �"1'/ f!lf?rlt o'f �i.�. i l E�~ C0:1 p:i.t'.c:1 1 q r:>.i n <:'; Ul 'l l:. h r' cl E~ h t.:o r� ��- fll C)I'" l.CJ i':\(_::iUI'" ~ �for� vJ h .i.c::h pE-'ti. tionc~ r� C:\ �;:,. (::\ m f.:\ t . t E�' ,... of 3 '7. }

DISSENTING OPINION CTA CASE NO. 3486 t.� h e' r � .i.. q t�,t . to R R~en u e Me mor a ndum Ord e r No. 33-8 1 , d a t e d No ve mber 1 9, 1 98 1 (~ x h . J), pro v ides as follows: "It: ~�'Ji ll n <::o t .c'cl f 0 r� F� C!n j fl CJ t . r�� F.:\ n �:::; E:\ C t i D rl , t .ti.~:L.. <::: 5::~J:J}._ :l:, i~ :1.......... <J ;:�lj.J:I ~": t .d ~< ..JU~Y<;~ I;.} l <'?~ ..t::y: . JJ.~r.<~~: . cl C' h t .CJ I' . : .t!iCJ.I.:..J::q<'~qqr.:�. l1r~:: c:g.rJ. ".'!.<:'.... i t . .i ~::;_ I::, I)<:;~ P �'\ '~:Jy fiC)TJ TI ,::I J. J .Y ���� ''� '~0q ;tj T ..;ili<J l: l.rr:: ...f rl. c~ umq ...... C!Ii .... ~}c;:c:q t,liJ:L ....... <}f :tf.:i<;? .~?.,~),q or� d j.<:; ~~~}~~:: .i t �, iqtj qf . ...... l..fi<:;:� .r: ~:\P ,i. l:: ,::t .J ... ......5~1 ~:';.~::;e.l ,. . H r...tc: h i ri r::: urn c.:> i �;:; r��c~i;~. l i. /c:�r::l :i. f t .hr:c�' p l'�� uc PPr::l "" o t t. t��,E~ l oan exceed the cost of the proper t y mo ,... tq .,;,\C) C�!cl � ('lr�rd t �. i �::; pr��c.~�::: r.Jmi::~. h l y �f n r � t .h 5.'"-' galn der.i.ver::l that the mortgagor - debt or did n u +: p ;,:<.'i' t : he:� 1 Oi'~.r�, cJ n y m ur�� r.::~ dnc:l D. l l c:1VJF:�' d t .hP f u ,.. E� r: l u �: ,, J r��r:�' n t hi <::'. p r��u p c�:� r�� t .y ~ "' r �rc:l h E' cl i d >. r 1u �1:. :;,, J ;;::. n f�)u +�. h F�~ ,.. t.u f i 1 F! t:. h E! 1' .E�' t�.'�' �r �r1 ;,;t.r1 c:! p ;;;t t. J ��, c�~ t . ;;,t ~:: tot' ;:::.uc:h C:IE:I:i. r�, .. 11 (Lincl r::.~t���;;::.c::u vincJ �::;t.t nr' 1 :i.. r::~ r::l) Un .Jurlc' ..,..~ ,.., th F' ::..,::. Intern a l Revenu e p e t i t i o n for r ev iew .. In t .hC' of t :. hr,;:~ c:l F: f en ;::;c><;::. t:. h i::\ t . co nstru e d strict l y ;;~. c:.1;,~..i. n '"'� t t:. h rc~ - ... i t h as c:ompli e cl with th e pro v i si ons of Sec tion s 292 3 1-j . i0

DI SSE NTIN G OP INI ON CTA CA SE NO. 3 486 c:o �f I.. J �; c~ 1\ l ::,1. L i u ,. , ..,1 1 J n t r?1., 1 ,�,.; l r I:;:1�::~ \,! I�'�' �11. 1. r~ ( : c::o d F�'~ , i�:l. <;.; ::c~;n r.::�' l"iC I I�c' c.J; -I':. J��; .,:,l t p ,., y m<�'! l 'l 1::. rn 1..1. �::'. t . b e �':':1. l :t c' q C�' d \'J i t h ~. ~ :-: �'\ C:: -1':. i -l'�u dE� i':\ n d 'f a. �i_ l u t .. <�:�~ -l': c� r:l u tu c: l i':'\ :i fll l.tl i l h u u. t ,:-,, c:Jm :i. tt:. i. n q . c un <;;;.o 1 i d ic\ '1:: :.i.. un o 'f' J. .i. a.h i 1 .i.. t�.y f n ,.. "1::. h P p ,..,l. \/ rn I"�~ n "1:�. o f +:.1�, <..' cJ E�' h t. ("l l . ..... fll U I'" 1:: q ,;,\ C! U I"" , l i ~ hi 1it v ma v va l i d l v b e s h i f t e d 2 n rl ,n t �. 1�1 E' c: t... E:' d .:i.. t u t... ..... c::� t... t Cl :,:1q f-:> C' ( pI�'~ t .i t j or 1\-:-:'� r. ) , "'' "; .i. t . :.i. "':� -1': l1 ~= 1 i3. -1'�. l'. r'� ,.. :in :.il".<::: u 1� ""' n '1::. :.i.r �1n JJ f~ t : �i. -!'� .i.. U ll e r � ,, -I'� I �H��~ ;;., r:: r:: c�,... ,. ,,:�, n c:: E�! \�J :i. t .h 1 a t-�.J ::,1n cl '.i..... i::l \.�J;;, i v r.:' l" n t 11�i.. ~;; l" :i.n ht t .u c l i':l :i. m t .h F�~ I'" c:� f 1. 111d .. p E' �!:� .i -!'� i. C'o r �I F�.� I'" �i.. c:;. F' r.:! t:..i t i o n e r- : D l"l tr:: r: d ::.; t h �'lt. t�.�Jpmo ,. ,, n 1.�1u m U,..c:l E~ ,... hl u.. :::;:=:;..... u l c1 i:'l '1.- <�:�!c:l 1\l c:o vc� m h F�'I'.. .l ('?, .l 9 H l ,, rn.�J n �i f c::' ,;, t: l y c: 1 c~ i:'t ,... t h a t t h e b urde n o f p ay me nt u f t � l' l ("�' r' C i'il :i. -1'�. E~. 1 Cl D. :i rl �::. t D>: :i.n t h F~ c: un s u J :.i. cl ,;:1t. .i o 1�1 n f t h�"C~ t�. t . l c:� uf p t..�u p r?t..� t:.y

DI SSE NTING OPINION CTA CASE NO. 3 4 86 .:-: r:: 1 u."" :i.v r:~ 1 v on t .h f" c1 C' h +�or� ... [ In t : hc�:::' n t h f�:~ !'.. h :'''�r�rc:l ~ I'"C?'':; p r:-ond F�.' n t:. .i.. r1 v o k E':''� c P r� 1::.,::<. i. n r� ,.,~q r...t .i I' 'C�:> mE: n -1::. "3 'I::. D b r:-:'� c: o mp l .i. t-~ c:l \.�,r .i t 1���, mo rtq a q ee- h a n k b e for e th e mor tq a qor - c:l e bt o r T t. J c,::. rn �/ o pinion th a t p e t i tioner i s e ntitl e d u nd e r Reve nu e Me mor a ndum No. 3 3 -B l to th e r e fund o f -!:.: h e' �::. r.r. m :.i. t . h ,,,\'./ in c:.J p .'�3 .i. cl r.: E:\ p .i +�. i�:< l F .i'.'<.'.i. }ti. I'" E' h .::1 nk t�.u r::: F'�' \! c� n r.J C' D .i ""�l ,...:i.c: t n t t i c:er th e n a mes uf hi �:; C� l�� r�t i.. nc: :i. P �':\ l of th e ~ prop e rt y mor tq a q e rl -j <:; uf n o f\l U fYlr::� r; t � .. J t . .i ~'" t:. l��,a +:. t:. h t�:'�~c.:;p ju d ic -.i.a ll y h r� ou q ht ;,:<. l :. t�. c�:.-' n t :.i.. o n c::o f +�_ l' l(?. C c:�U !'" l '. fo r th e purp o~e of a djudi ca t ion . J I 11:�' r� r:�� IT�/ c:l i. �::; �::;F-' n l:. t:.o t �. hE' nv:\ :i u r�� it:v u p in .i. ur�r � C:i t y ~ .l f.fH H. ~ RDADUIN .J u dc:!E"!