CTA Case No. 3745 (Decision)

REPUBLIC OF THE PHILIPPINES COURT OF TAX APPEALS DUEZON CITY TMX SALES~ INC.~ Pet.i t.ioner� ~ C.T.A. CASE NO . 3745 CO I"WI ISS I ot'IEF~ UF INTERNAL REVENUE~ Respondent. X- - - - - - - X DE C I S I 0 N (.) t b t :\ ,.-� i s a si mple case b ,:~. ~:. i c: i ~;�:; t..le of t,�ih (�~ thf.�? r� or not. p(::? t i t i o r1e r- ' s <:.\ pp E?<':\ 1 i ~:; t i rnr:'! / ")at�� r�-� E')r:l., As i t a ppear s, p e tition e r corporation exist ing by virtue of Philippines the fir st quarter e nd ed J C"ff-3 :J. of the l 9f:3 l pa..i..d r:o 2 4 7 , 010 "0(::0 .irlcom!'? J. c;'f:l .l. pE> r� �� CB Con "f i r �� m ;:,\ t i Dll F':E!c: r? i pt. No � o:r. F(c~ c E~ i p �1.�. Nu n 7 0 .1. 1 ::~: on c~.n esti mat e d income o-f P571,174 .3 1 (Exhibits B, B-1, , B ��-?, r-���� r:: -- J. ,, D���- 1 ~ second quarter e nd ed .June ::;o, 1981 incurred a net loss in th e amo unt of 354

,. - -- - - - - DECISION CTA CASE NO. 3745 .. r , r �(��'tt..tl ...,.., (F;-:hi.b .it.�:.:; F -� l ~ F-�:::: ) ; t h��: I"C� !.:.1...1. r �n ( E:.:-: hi. hi. t:.c,:; C1, r:J ��� J, D �-�� 2, E.~ ����� ::::; ) ; r e port ~ d a n a nnu a l i n come I::Jf �t�. ot <-). l nf F'7 , (;(:.f)!' (-,!.~ 7 . 00 pr-:.~ r � rtn n '�-'��':\ 1 l n c:: omr~ T t�\ :< F<E�?-1:-.u.t�� n l�J.i. th thr.::� r8spon d o nt 's Offi ce on Ptpr�i 1 1 :':.i, 198 ::~ ( E: ;: h �( h:!. '1:.. ::::. H, 1�-1-� l , f+<? , H�-7) '"i l...t �:;:; t .<":\ in in q i:\ n r-.::~ t 1 o ss ~), II - b) ,. petition e r filed a c l aim for !?tl�'''�' r�;;} f urtc.l ()!I A��� :1. , A����~:? ) hut u n t i l thE~ �1-7 , o J o . on ( F :-:: hi b i t. ~=" fj_l:i .rl'J u �f t.h E�~ ir t �c:; t ,,~ nt. �::; 1...1. .it:. no <:J.c t. ion b()E0n tc::..k E? fl ,:;1.q iJ. .i. n c,:; t: t�. h t:-) pF' 1::. .i. t .i. un E' t.. ' o;; r �i q ht�. to c? n �f u 1���c: C::! t. h e~ c 1 <':\i..m r �i�:-~c:ovc� r� y o f t .':"- >~ E�'r� r� ortc:: ou~; l y Ol'" illr:)qal l y c oll c:.�c: tc-~d t1 y .in vc:. k .i :�: fJ th e <;::. t t:~ t1...1 t.u l"� y limitati ons man d ate d in (former l y Sec. 306) of t he Tax Code of

DECISION CTA CASE NO . 3745 . ���r ' 01 i i Uf\i -f. li :�� rJ :.�. t_,�..' r� f f.1.' ?.'y tll C' rl 1.:_ I) (' t .d:; C..!, . t . h <:~ t . t h e' pc:-~ 1:.. .i. t. :i.( :J il c I' � i ~"' iO:l li ��� E'i:l.C~ 'l b ,:\ t�� t"'f:.' cl f' :���-~J t n 1:: l a.i. m.ir 1q l:. h t:~ r- \C~ f�..t. nd C (Jr�J�;; .i..cll'-' r.. .i. nq th <J.-1.-. m u r � t:~ th .:J. t l�l i:\CI h�:.~t.wc� c0 n t. hr-~ ' .... /..~..�<�:.y�.J-~..�. uf' t .a. :< u11 1�1a y )\f:'�' l'l f.ilinq o i' ; J. r;�uJ. ( .l <:;; t�. qud t �-l:.r-:�' 1... :i. n ~ :;i:..;,,_ J.lm E! n l:) ~�. 11 �.�:�~ c: ] ..l. .if\1 .i.r1 Cuu r i. C!l l l''l d r�c: h :..\ J. J E'(J ;_1 l .i C' l 'l o::: .�., ': 1. L' t li E! I)(.~� 1:. J D'"i r:;. �:;::. t F :; l.i:l. :i.! I l': cl tit. 1. ,... .i.. rl q t .h e> �1.:.�. : ::,�, I:,J ;:� �/c.:�,_v� :::;J J?!Jl dc1 nCJt if! <:; o r: O: :' i....i.. l:: oli:O! li Ci t�� I:Un t .E.'I..tr :l c'> �(� h ,:�:\ t. ,�) :;:; 'c' D C Uf'l temp J :\ t.F:.�cl .i.n '��:--'.(.7......:.'1 ~ i. h ..i.. r.l � J' I r� C�' ':3 C r� .i. pt. .i 'If:.! >::>f the l�.c J-!:".<::t l .i..nc:o�n.-:::� t i-J ;:: 1 .i.. ,,, hi. 1 :.i. t .y �f CJ ,. . t I' l l';? t.<:~ ;.: .':':\ h l E~ '/::';,, ,. ~� .. _~.r�i�..:l .il"l l:: h .i~:; c:D.~:'> C~' !' f P l J. d �...:. c upDr\ t.ht=: f i l.i.nq of t. ll �;:~ F .i. 11i�~ l (')dj ~._~_,;:; tilll?l"l 1:.. F\(:-? t�.J. r� n on {:)pf'" .i.l of the Tax Code a nd not n n r") f!~/ d i�J t .r.: �::; (') f th e quarterl y pa y ment s or� �i. 11':::.1:_;_ ,_1 l rw :� n i.� v1 h :i.c h -:�'�'���� c, ,":\ t. me��"'.� 'I.:�. .i.n t-.c t�� :l m -:::\ r t d The \.l d t �::~ �:�; n f t l�-,,.,2 '1-i .i. i:: hhn 1 d inq U /'"

DEC I S I ON CTA CASE NO. 3745 I'C"'11l.i.. t. ~-.D. ri C:: r::~ 0 i ' t. he:> c: r--�r-' d .i. t. a h l c: .i .r�1 C:: 0111(-? t. c::\ :-~ i:~. r��� E�! f1 0 t t .h 0. app a.r �p nt. q Lt .i. h b l c-:~ on C o d..:' fl i:'\d ~; q u..,,, r c: l 'I !"" C:��c:;u J v�E~ ( :I :i.. r-1 V�J 1"1 ..i.. c: 11 l r_.-~ 'l cl .'t. l i !.:. h C! .':'!. '1.'.i..\ :-: .i ~::; p .':1 i .d .i. n :i. n �::; t: .:J. l l mc� r1 i:: <:;; ~ pr o v id P el :i.n �f t CH il I i i:~ +: -~ Cl t"' 1 cAS t fi'' Oill r) i"l C) :':'!. )i rn c:~ !"l t r� ( .. Ci fJi 1. r:-~ t:. (�:! J )'' l hu s ~ ~ p ay ment of a part or p�J ;�"I:.: .i. n rl Ci�.\l"ll"l0-1:: t .o t�. i�lc:..� ~3 l:. d t.t .l t. F:'! u'f lim .i.t<:\tion ~; . In �1.�. 1�1j . ~:�; r .. ,-:~ �J .::!. r� �d t .h r' ~\' 0 r.. d word s 'th E' tax ' in c nfn p ,., r-� <':\ h l r.-~ to l.. <J t. t )('-' r::� l'l t. .:i.. r F." t.iJ :< ,�:':1 n d nut�. '" pn r-� t .i.. o n t. h r:.� 1 �r::~ o �f ( C J. a r �k \' u " f:~ ., u . s. I< r �i r.::drl <:::�r�� Co . v. 3C) 7~?,1; l�l :i.l J. ~" v" u " ~3.

DECISION CTA CASE NO . 3745 ttl E' VOL~.:\ i:J 1 E:' of ~'Ji tt1irl ,.,; t. ;�,\ t t .t t. c<:'; ,. �� c� ' 1u .:i.. r.. :i.. 1�1<.:J rpf und c l ai m~ rP f er to th e d a t e v" u . f:~" 8 F S upp. 8 60 ~ 86 3 : Coll e ctor (J f In t c ~1'� n ;:1. l F c~vr-:~ nt.t c:' F' I' .. i C�~ t: u ~ .,..::,. .1.00 7 ; C ornm :i.. ~:'>''>i un c~r � cJf v. 18 f a�::; h.i.on :i. n-1.-.o o;, .:~ "\- .i. <;;. �f i.~C to r.. i l '/ J r~ r.J�'!. l <:'> .i.. t. u .:,:1. l:. :i.u n � f-3n 5.n 'J h y <:::. J..t< : h pi ��o nnu. nc r-:�~ m c' n l . r.. ,..t 1�1r 1 .i. n 'J 1.:1 �f <::; t :i.:\ t .'�.1t .u r �y p <::~ r...1. u d o f J. :i. m.i.. t:c:-:1. t.i.on s I.:�JO I..I. J Li q1..1.i. r- 1-:. of t 1..1(�:' f .i. l .i.. fl(J C) f t ll f:~ P''�~i""..i. t .i.(J i l �f c�1�� 1' 1,..,, r�f:: 1�1 .1. If. , .1. 9 E311� ';-J:i.. tl1.i..r1 th E~ p er i o d c ounted f rom April .1.5~ :1.7 8? ~� l..l ��c~ d ,.,, t. c'~ u f ''-' \..1.bmi �::;~:; .i. 011 u �f t h e �f i. ri "' J. a d j u <:; t e d I���I F~ n c:: c:�:� t. h e pr ese nt action wa s fil e d s e as onabl y T 11c:' c ,., �::; c~ b e for e U s h a rdl y pr es ent s a gripping (I c.:; t. h1..1 ~::; ~::; h o \�.�n :t .h <'~' 1:> <~ ;..:; .i.. <.:> for.. t. ti E' c 1 ,:�,.i. m i s

DECISION CTA CASE NO . 3745 . d .;�_,_-1.:. ::~ o p c~11 1 '/ 1 i:J. i d a.n c:l f u 1 J '/ c:l i ~; c 1 o�;;ed � :--�cc:o r-- d <=:; petitione~�s cor�porate income t ax retu~n f Ot'" i:.hE1 p o int ~:; t .o no .i n C CHTl E! nor- f EI C i.:.tJ O:\ 1 :;:; u. p t'-~ r ��f lt.�'�.i -1:.: i t-:-~ ~=; 1�-J h i c: h n ee d be a b~idged. �1�:. h (-~ r � 1:7':' _,,,_r 1 '/ '�- c..l r-�:.~� f .j.. r...-. .i.. P�~-n ~":v, r:'md t:.hro� ~ --� o::~ ( : f:l r �d in i:l. 1:: c�::; it. c: 1 ea.r-- t. h ,�:,\ �1:�. t. h( e~ 1�� e-:-, qu .i.. <:; .i. t F:.' c.s l::.d tcrnPn t s a nd c:e ~tification s of t .h r:�, c: i fl (")fll('' t ::.l ;< p i:, .id i:H1d r-c,m:i.. t . t .t:.�r:l ,__! pon vi hi c:i�l "i::.dc:. I-::Pd th e c J .:,,i.rn!-:�d r � c~ �ftt. l "ld could f!J I'Tt:i. �:::; h fur- ci P f .in j _t.F~ but. j _d :1 .i. fl CJ -::; p(; ~~~:~r_j , I t �1 on:~O\/f-~ r- , t"(�~�;:; pond,..;~n t pn c:,c<::, 11u rJ 1::! j C' C t. :i. u1 �, i r1 h .".:\ v j _1�lq t h r:' c ,;:\ <::.,-~ �::; u bm i t. t. E~ d for- r.:l r'�'C: :i. �;:;; :i. CJI"l 0:') 11 t .h r:-} 1�>�'.\ <:'i .i. ;;., u f l: l ir;:' p 1 p,:~ d i fl q �::; i:J.n c:l l'"f:.'C CJ r-d ::; -'".!. f t .(:> r � t. l1 r-:-~ pE:� t :i. t :i.n r' (-:� ,.... h <:l.d p r �c��:;c n t .E� cl i:~1 �1 cl u �f f E' r �ed i. t. :; II f:~:i. nc: F'! on E~ 1'-lho P I'" ;:.l '(<::; j t...tdqmc�n t on ttl�~ p 1 e;,;~ d ing ::; ~'Ji th o ut (:1 f �f i:'-:c 1'.. :i.l'i (] p I .c:! U f as to .th e truth of a l l t h ~ ma t e r i a l L!H.:~ -I::. I''" U. t.h <':\ l l mi':\ l:. C:! I'. i ,;,1. J r--r-~ 1 f='V c:\ n t. .:0. 1 l t'..' fJ i::\ t: :I. u ri �:=:; >::> f th e oppo s ing part y, ~ nd to r�e s t hi s 11! 0 -f:: _i C) l"l f (} ;�� j '...u::l <J mt.' n -1::. o n ,:'\J J. F!CJ i":\ -1::. :i.. Cll'1 ~;

DEC I S ION CTA CASE NO . 374 5 '''i l..I.C: h 0 f a.dmi t: t e d , c:z:.. !7} 0:::\ :::; .1.0 . , . F' hi 1 ~~;[)b E v e,n qE' 1 is t .::\ \1 , . , , ,'-:\ l " D e�~ l a. 76 F'h .i. 1 1 1 ~.5 ) t r�� (;:~�::; p u n cl E~n <":l ~:; qu e s t ion in g s e ~ iou s l y to p ,...F, �::::.c ,r �, t''.!r:l , v.Jhi c h so whe n t h e e videnc e di :::,p ut.r:~ c:l b y s u f fic i e n t l y es ta bli s h e s p eti ti o n e ~ 's r i g h t to th e r��(" -f u.r1cl � d n d !:3e r��v i c: c-:- C ( J r��po r �c:\ -1: . .i. o n �~ ,. 1::u mrn :i.. <::; <;;, .i. or�1c~ r�� of In tc l,..n .:'t l. .. l\ l c! .. �".'!.":"..":' '".t-"".:.:.�. ::.."\., J.. l::fF~ 5 ) " I! no t d if f e ~~ n t c on c lu s ion o ug h t b e ~ eac h e cl in I/ b .:;,,r�� . W H ERE FOR E~ find in g t h e p P 1::.i. t. io n to ~:;.;=_i. fll t;:~ .1. -:::; t. .;�l. ffl �::11. 1.I �1 �!.-. �:::.0 U CJ h Qu e 7 o n Ci t y, ME- t ro Ma n i l a , Ap ~i l 29, 1 9 88 . ~-~ Ass o c i a te Judge 3C u

DECISION - CTA CASE NO. 3745 0~ .. . WE CONCUR: ROAnUIN 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 ~n accordance with Section 13~ Article VIII of th e Constitution. AMANTE F Presidin~ Judge Court of Ta x Appeals 3C1