CTA Case No. 3863 (Decision)

.. REPUBLIC OF THE PHILIPPIN ES COURT OF TAX APPEALS fJUEZON CITY NEW ZAMBOANGA UNIVERSAL ENT ERPRISES, INC., F� E' t i t:..i on <�:"! I'" , ..... Ve l'" !:::.l..l'"; ..... C.T.A. CASE NO. 3863 THE COMMISS IONER OF INTERNAL REVENUE, nE�~?.� pOnd!?!n t .. ooooo oo-o oo o oo �-� ~ ooO NWo O o- !�! DE C I S I 0 N A c laim for the refund of a lleg ed overpayment of corporate income tax f 0 I'" �:':\ t 0 t .i:':\ l ,;;,mount of P136,615.13 representing withheld ta xes by va rious wit hholding 3qents for the years 1982 and 1983. n�:; ''" <�:.�~ t:. �for-t.h pF�~ t .it: .i.Cll"l PI'" co ,,. po r-i::1. t. ion org a n ized and existing under the Philippines, a ll eges, that it is in the business of l easing and merchandi s ing= that from its rental income during the calendar years 1982 and 1983, the sums of P64,632.39 and P83,583.74, were withheld by its va rious withholding agents, respectively; that for year e nded December 31, 1 9 82 it incurred an income tax l iabi l ~ty of P11,601.00 (applied agai n st 380 ..

DE C I S I ON CTA CASE NO. 3 863 2 l.J�-, (": VJ :.i. t�.h hE' J. cJ am u t.m t c:l'f P64,632.39, resu l ts .in P 53,03 1.39 o verp aid credi t ab l e withheld �fo l'" its corporate annua l income tax return ended December 31, t. hu~~ , r-� f:~�f un d ,;:~ h 1 C:':' o:imount of P83,583 . 74 r e presenti ng o v erpaid withholding th E1t i t �f .i.l F::�c:l on �for- the overpayment of income t ax .hut to the �f .i..l :i.nq o�f t�. h i ~:; <::;. Ll. i t:. 'l::.i::ik f:~n no ,:\c t ..1.on. T ,::\k inq E2 >~ c::r?p'i:' :i. un re s p ondent Commissioner of Int er n a l Revenue ave r s that th E� r.:lct:i. 'l:.j.un h i�'\ S nn it doe s nut state when the tax ht ~::;o t .t q � tu bE�: i''F: �fun ciPc:l t c:1:-: in ques ti o n was co ll ected in accordance wit h law; that p I" 'Cl O �f it::; u nu n to E:'~~;t.E~bl.i.. �:;:; h .i t s the::.� r �c: fund c:\ n d f ,,,, :i. 1 u ,,.. f2 t .n s u s tain the burden 1 0 ~:; <:~f."~> i l"l C l...ll'" F" C?. d and, that s u c h claims have to be construed s trictly bei ng in the nature of ta x exemption. The pa rties s ubmitted the case tor deci sion the p l ea din gs ~3D� memoranda which they f E>..il<:.::r:l 'l::o t.i. lr:?. 38 t1

DEC I E1 I DN .. CTA CAS E NO . 3 86 3 3 patina of expediency nonetheless .i.mpl''(:-:�::::'::;ed, f .i.ncl :i.l l C:1q .i.e: thr2 pr ec ipit ate l y broached by the�:? petitioner that the c 1 i::\ .i.rnr:�?c:l r-r:~ �f I.Jn d c:;,:1n simply kind uf C:: :i. I''C: 1.1.Ill ;::;. t t:il''l 1.. j ,;:\ J. C: 1 U U t drawn from inferences without In the case at bar, �f ''" .i. J eel to rTk\ lT' I'" :i. c:\ 1 E\ 11. r:!�J<:~. t.:i.. on�;:., nr?i i.:.h("'!~� p r- c�t~==;pn t:. :i.n q n n 1�� n f �f f�? 1... i n q C'V :.\ c:l F?l'i C E:� the' i':\ l"lc:l c: urn PE' t.E�nc: E�' "ThP f':; nur-t: t...t.ndc�!'" c:: un '"'�.i cl F:�' ,... r1 u hE2F?!"l �f U l''nlt:\ J. 1 y of fE} I'�c:�c:l" fDI'" 1/,lh.i.c:h 3 :- Rt..tle 13 2 ~ Rul es o�f Cou1' .. ) .. Upon the facts on record there is aff:i rmati ve allegations .. T II C? <::; f��l 0 I'' t D �f t f��,C' Ill i':\ i:�. t E�? t�. .i. ~::; t .1�10':\ l". p E-! t ..i. t. .:i. C� l"'t C:� I'" h C'\ <.:. he:-:� �f e:\ i J :::; '"'�'"' t ..i.<;;. 'f a.c tor� i 1 y to ~"=. l� ic:ot.�J i:: he�' �f <:<c: t�. upon \�\' h :i. c h he� 1::�<':\SE'<:; h .i..�;; c::J;,:~.i..rn~~ dc>fPnda.nt. .l <.'5 no obliCJ <::\ t ..:i.nn tu pr-ove�:�' h :.i.. <;:; ciE�? 'fE'I"iSE?. II ( Be l e n v . Be 1 en :1 .1.::~; Ph .�.i..l ~.?02) " cold : D U I'" i':. ~"; C: ,:-,1. n 1"1 C) t:. c o n s t i t u t e themselves uf p E.'' !'" <;;:. Cll"l ~:; nut. l (�?C1�'-' 11 y inC:: C:Oill PE' t :. C.'-'l't t ... clu �f C')C) 1 i ~=:. h t hiniJ<:o, tni~. k E? .. 3 8 �-;

DEC I S I ON CT A CASE NO . 3863 - 4- ridiculous : ontracts~ u se miserable judgments and by thE'm indeed all they have in thi s world; but not for that alone can the law intervene and be, in .;,::~cld.i.tion, v:i.olc:l.t.:i.on o"f' l aw, the commission of \'�J h.::1 t t : he law knows as an actual wr��onq, hr."'! �for-f.~ t.hE~ c: ou.t�- t.s i:\ ,~e lay ho l d of the situation and remedy i t. � " ( Va lle s v . Vi ll a, 35 Phil. 769). theref o re unable to the petitioner' s entitlement to a fa vo rable d etermi nation as a matter of fact and law. A CC ORDINGLY~ p e t i tion is h e r e b y di s miss ed at pe t it i o n e r' s c o s t s. S O OFWEFi: ED. �.> Quezon City, Metro Manila , May 3 1, 1 988 . tl<::;soc.i.at.e ,Judqe I CONCUR: AMANT F' t""F:>~;; :i. d J. n!] ,] Udq E' (on officia l leave) CONS TANTE C. ROAQUIN Ass;oc ia tE' ,JudgE! 38o

DEC ISION - CTA CAS E NO . 3 863 - 5- CE R T I F I CAT I 0 N I herr.~ by certify that this decision was reached aftFr due consultation amon g the members of the Court of Tax Appeals in accordance with Section 13~ Article VIII of the Constitution. AMAN TE Pr-�esiding ~Judge Court of Tax Appeals