CTA Case No. 3941 (Decision)

REPUBLIC OF THE PHILIPPINES COURT OF TAX APPEALS QUEZON CilY KAPATIRAN REALTY CORPORATION, � Petitioner, C.T.A. CASE No. 3941 COMMISSIONER OF INTERNAL REVENUE, Respondent. -------- X DEC I s I Cl N This is a claim for refund by petitioner Kapatiran Realty Corporation of the amount of o ~ ome F'290, 401.59 repr�esenting overpayment t a�:{ for the years 1983 and 1984. In petitioner's f ina.I adj ustmeri t return for 1. 9B3, ta:.:ab 1 e income was F'783, 293.00, with income tax due thereon of F'264,152.00 (Exhi. A to D-6 ). It had a withholding tax certificate for 1983 in the .-..:~ moL.mt of F'479,78:3.�.9 (E:�:hs. E to E�-1), a portion of which � n the sum of p:311, 822.00 was used to pay its ta:�: o? l iga ticm for the year 1983,

DECISION CTA CASE NO. 3941 resul t.ing in an e:�:cess ta:�: payment .. for 1983 in the amount of P47,670.00 (P311,783.00- P264,152.00). '� Further, although petitioner's withholding tax certificate for 1983 totalled P479,783.59, only the amount of P311,822.00 ,was cl~imed as credit for the year 1983, thereby ~eaving difference of P167,961.59 (P479,783.59- P311,822.00). In its f ina 1 adj ust mer:' t return for ta:< year 1984 petitioner declared a net ta:<able income of P712,217.00 and income tax due thereon in the amount of P239,276.00 (Exhs. F to F-3). To settle the aforesaid obligation, petitioner c r�ed i ted the following amounts: ( 1) P47, 670.00 r�epresenting the e:�:cess ta:-: payment in 1983; ( 2) P.167, 961. 59 repr� esen ting unclaimed tax credit for 1983; and (3) P314,046.00 representing c:r�editable ta:�:es withheld at sour�ce in 1984, or a total ta:-: credit of P529,677.59. Since the a mount o f ta:< cr�edi t available for the year 1984 wh ich is P529,677. 59, e:�:ceeds the amr.:>Lln t of tax d-Ll~ for year which is _P239, 276.00, petitioner was thus left with a refundable amount of P290,401.59 . r: -. U .-

DECISION CTA CASE NO. 3 9 41 - 3- Respondent Commissioner of Internal Revenue had not presented .. any evidence to rebut or contradict petitioner's evidence consisting of its income ta:< returns and its withholding t. a~�{ certificates and its claim for refund dated May 25, 1985, (E :-:h. H). Instead, counsel for respondent submitted this case for decision based on the pleadings. SincE? one who pr�ays for judgment on the pleadings without offering proof a s to the truth of his allegations must be understood t,o have admitted the truth of all the material and relevant allegations of the opposing party, and rest his motion for judgment on these allegations taken tog et her with suc:h of his own as admitted (Bauermann vs. Casas, 10 Phil. 386; Evangelista vs. De la Rosa, 76 Phil. 115), respondent may not be con si dered question seriously pet~tioner's ~ ntitlement. to its claim for refund. More so, the evidence of petitioner more than s ufficiently ~5tabl~shes its right to the refund. WHEREFORE, respondent Commissioner of Internal Revenue is hereby ordered to grant a tax refund to petitioner Kapat.iran Realty Corporation in the r:-' .. . \..,i_ \_

DEC I SI ON - CTA CASE NO. 3 941 - 4- amount of P290, 401. 59 �representing overpaid income tax in this case. Without pronouncement as to costs. SO ORDERED. Quezon Cit y , Metro Manila, August 1 , 1988. . "-R-O-A-QUIN WE CONCUR: AMANTE Associa .e Judge -~ Assoc ia te ,Judge CERT I F I CAT I 0 N .. I hereby certify that this decision was reached after due consultation among the members of the Court of Tax Appeals in accordance with Section 13, Article VIII of the Constitution~ Presidi g Judge Court of Tax Appeals