COMMISSIONER OF INTERNAL REVENUE v. RED RIBBON BAKESHOP, INC.,

REPUBLIC OF THE PHILIPPINES COURT OF TAX APPEALS QUEZON CITY ENBANC COMMISSIONER OF CTA EB NO . 2491 INTERNAL REVENUE, (CTA Case No. 9121) Petitioner, Present: -versus- DEL ROSARIO, PJ, UY, RINGPIS-LIBAN, MANAHAN, BACORRO-VILLENA, MODESTO-SAN PEDRO , REYES-FAJARDO, CUI-DAVID, and FERRER-FLORES, JJ. RED RIBBON BAKESHOP, Promulgated: INC ., JAN 1 7 20 Respondent. X------------------------------- RESOLUTION CUI-DAVID, J. : Before the Court En Bane is the Motion for Reconsideration (Re: Decision dated 02 September 2022)1 filed by petitioner on September 23, 2022, assailing the Decision2 promulgated on September 2, 2022, the dispositive portion of which reads: WHEREFORE, the Petition for Review filed by petitioner Commissioner of Internal Revenue is DENIED for lack of merit. The assailed Decision dated January 7, 2021 , and the assailed Resolution dated June 3, 2021, both rendered by the Court's Third Division in CTA Case No. 9121 , are AFFIRMED . SO ORDERED. 1 En Bane (�8) docket, pp. I05-116 . 2 � 8 docket, pp. 82-104 .

RESOLUTION CTA EB No. 2491 (CTA Case No. 9121) Commissioner of Internal Revenue vs. Red Ribbon Bakeshop, Inc. X--------------------------------------------------------------------X The assailed Decision sustained the ruling of the Court in Division ordering the cancellation and setting aside of the assessments issued against respondent for being void due to lack of authority of the Revenue Officers (ROs) who conducted the audit of respondent's books of accounts and other accounting records for taxable year 2009. In his bid for reconsideration of the adverse Decision, petitioner maintains that the Memorandum ofAssignment (MOA) directing RO Arriola and Group Supervisor (GS) Balbido to continue the audit/examination of respondent's books of accounts and other accounting records for taxable year 2009, is proper. According to petitioner, what is important is that the audit of the taxpayer has been previously authorized by a Letter of Authority (LOA) and that only such taxpayer may be subject to examination by revenue officers. Thus, for petitioner, the MOA directing RO Arriola and GS Balbido to continue the audit or examination of respondent for the taxable year 2009 is only proper and procedural. In rejecting 3 petitioner's motion for reconsideration, respondent submits that petitioner's arguments are mere rehash of his arguments previously denied by the Court. According to respondent, the arguments are devoid of legal and factual merit. Hence, the Court En Bane did not commit any reversible error in denying petitioner's Petition for Review and upholding the ruling of the Court in Division. Nevertheless, respondent counters that petitioner's audit/ examination of its books of accounts and other accounting records is void since the ROs who conducted the audit were not authorized by a valid LOA. Indeed, all the arguments raised by petitioner in his Motion for Reconsideration merely mirror the same flawed arguments in his Petition for Review, all of which have been determined and passed upon, first by the Court in Division and subsequently on appeal by the Court En Bane. Petitioner failed to advance any new or substantial reason to justify a departure from the previous conclusion and findings of the Court. 3 Respondent's Comment (Re: CIR's Motion for Reconsideration dated September 21, 2022), EB docket, pp. 121-127.

RESOLUTION CTA EB No. 2491 (CTA Case No. 9121) Commissioner of Internal Revenue vs. Red Ribbon Bakeshop, Inc. x--------------------------------------------------------------------x WHEREFORE, there being no new matters and issues raised that will merit a reconsideration, let alone modification of the assailed Decision of September 2, 2022, petitioner's Motion for Reconsideration (Re: Decision dated 02 September 2022) is DENIED, for lack of merit. SO ORDERED. lmAM"Jnp{/ We Concur: LANEE S. CUI-DAVID Associate Justice Presiding Justice ON LEAVE ERLINDA P. UY Associate Justice ~- ~ ., <.__ MA. BELEN M. RINGPIS-LIBAN Associate Justice {'..(,U-1" 7� ~ CATHERINE T. MANAHAN Ass.o.. ciate Justice ~EL.rr~-F~ MARIAN ivll F. RE~-FAJARDO Associate Justice c~t: