CTA Case No. 4032 (Decision)

REPUBLIC OF THE PHILIPPINES COURT OF TAX APPEALS QUEZON CITY JARDINE DAVIES INC., Petitionerp - versus - C.T.A. CASE NO. 4032 COftftiSSIONER OF INTERNAL REVENUE, Respondent. X- - - -X DEC I s I 0 N This is a claim for refund of petitioner's alleged overpaid capital gains tax for 1984 in the total amount of P63,723.05. Petitioner is a domestic corporation organized and existing under the laws of he Ph i lippines, with office address at #222 Sen. Gil J. Puyat Avenuep Makati, Metro Manila. On April 15, 1985 petitioner :filed its Final Ajustment Stock Transaction Capital Gains Tax Return for the taxable year ended December 31p 1984. The tax returns show a net capital loss o:f P3p802p722.30 arrived at as follows: 538

' r' DECISION - CTA CASE NO. 4032 -2- lla.e of Co�pany lu�ber Unit Total Cost Gain or of Selling Selling I Including CLoss I Expenses shares Price Price of Sales) Gang-Hail Phils., Inc. 29,000 P21.82 p 632,780 p 290,362.50 p 342,417.50 Jardine Davies, Inc. 785,000 2.00 1,570,000 1,517,604.50 52,395.50 Globe-Kackay Cable & Radio Corp. 375,000 10.00 3,750,000 3,750,000.00 Lincoln Philippine 1,000 160.00 160,000 160,125.00 (125.001 Life Insurance Co., Inc. Intercontinental Gar- .ent Kanufacturing Corporation 6,260,000 0.04 260,000 4,457,410,30 (4,197,410.301 TOTALS P6,372,780 P10,175,502.30 IP3,802,722.30 Petitioner claims that the ~allowing payments were made during the same taxable year, totalling P63,723.03: a. Sale o~ Gang-Nail Phil., Inc., Shares <P58,483.50> Selling Price P623;780.00 Less: Cost 290,362.50 Gain P342,417,50 Tax Due: 1st PlOO,OOO. - lOY. PlO,OOO.OO Excess o~ PlOO,OOO - 20Y. 48,483.50 T 0 T AL P58,483.50 b. Sale of Jardine Davies Inc. Shares <P5,239.55> Selling Price P1,570,000.00 Less: .Cost 1,517,604.50 Gain p 52,395.50 Tax Due at lOY. p 5,239.50 539

I .1- DECISION - CTA CASE NO. 4032 -3- Both the said capital gains of ?342,417.50 and ?52,395.50 were reported in petitioner's Final Adjustment Stock Transaction Capital Gains Tax Return for the taxable year ended December 31, 1984 <See Exha. A, A-1, A-3, B, C, D, D-1, D-2, E, R, G, G-1, H, I, I-1, I-2, J, K, L, L-1, L-2, N, M-1, and N- 2. ) There being no capital gains tax liability for the year 1984, petitioner now prays for the refund of the said amount of P63, 723, 05 in the instant petition to toll the 2-year prescriptive period, the claim filed with the BIR' a Appellate Division on May 3, 1985 not having been acted upon. The aforesaid facta are not in dispute and respondent Commissioner of Internal Revenue submitted the case baaed on the evidence adduced by petitioner and the recorda of the case. The only issue is whether or not petitioner is entitled to the refund of P63, 723. 05 representing ita alleged overpaid capital gains tax for 1984. The Court finds for the petitioner. 1. The respondent never seriously controverted petitioner's evidence entitling it to the refund. As a matter of fact, respondent merely submit ted this case for decision on the basis of 540

DECISION - CTA CASE NO. 4032 -4- the evidence adduced by petitioner, as well as the records of the case, without presenting counter evidence or filing a memorandum. 2. The Court likewise upholds petitioner's claim that it has no capital gains tax liability fo r 1984, as sustained by evidence, having in fact incurred � a net capital loss of P3,802,722.30. Respondent ' s contention to the contrary is baseless and gratuitous, not having presented any proof to suppor t the same . WHEREFORE, judg�ent is hereby rendered in favor of petitioner Jardine Davies Inc. and against respondent. and the 1atter is directed to refund to the for�er the a�ount of P63. 723. os. representing erroneously paid capita1 gains tax �or the taxab1e year ended Dece�ber 31. 1984. SO ORDERED. Que2on City, Metro Manila, August 6, 1992. ST~A DADIVAS-FARR~ES Acting Associate Judge 541

DECISION - CTA CASE NO. 4032 -5- I CONCUR: ~v-A=Q.. ~ ERNESTO D. ACOSTA Presiding Judge CE RT I F I CAT I 0 N I hereby certify that this decision was reached after due consultation between the members of the Court of Tax Appeals in accordance with Section 13, Article VIII of the Constitution. E.~O-~ ERNESTO D. ACOSTA Presiding Judge Court o� Tax Appeals 542