CTA Case No. 587 (Decision)

c LL CIFIC CO .P Y, p ti 1oner, - - v rsus c ��� c o . 587 I 10 0 I .spond n � X - - -- - - - - - - ---X CI I 0 Th re d nt 0 r d e 1 d a ai st c d- llad r P ie Co pany the total s of 2 ,551. 9 t d 1- c1 ncy 1 ax n �anu v neti bind , def'i- c nc dv tX ch r 0 n 0 ro 1 pen lt � re pp al, however, 1 11 it to th dete in tio for 1 br o er's 1 d and p rc nt- X d oU C d d f'1c1 ncy u c r r' s 1 s tax and urc a � h r cts re not 1 put � titio r, Cad 11 r 1 ic Co p (C 1 ' der or r vity), is do ti cor or tion (P � etition for vi w, C1 r c. p. ), t he r1 y purpoo or ch, bodi d in 1 ar 1cle or 1nco 0 tion , is oth r- wi 11 -ro- d d, incid nt to its pri ry urpo ' it 1 PO r 0 oth ��

G.T� � C � 587 - 2- It ha rELnc. of4'1c ( r c ic 0 e 1 y) in ' C lifo nia, 1ted of ric ch v s it buyi ot ice ( ib1t 'i 6, I \ rec � � 3 ). r1 h erio 0 y 1 1 9 o De r 31, 1954 (s Ex! . 5, I r c. p . 19), Cadw ad r sec r d 1 loc custo rs er or t pur- y th atter of ere d � su t to th r e pon, ocab 1 tter r cr to t ;Jr r c or ic dra by t b er 0 p th 0 � copy of t ontr ct, to t h r 1r 1 t te of ' e t to r anch Of i c whi bo t rc d hip h dir ct 0 1 c l c to er n t Phi 1 i 0 it ( nc Of ice) invoice ( h . y ' R rec . p . 3 �' s t n . � 11). h corr PODding

D CISlO .. o. 587 C. 1' � � C - 3- bi 1 0 1 di d oth r hippin d c nts an dr rts dr a n vor or the Br c f i c r for ard d to he b k w ch issu t e 1 t r credit f r ccept- ane and p 0 bt a i tio ot n tur ot th tr a tion b en C l er t loca b Y r , we r prod ce d r h revision or 1 eon- t ct ( c. P� l)h p 1 R r.___ I D T0 o. 54Lzaa D rip io of e c 1 de e � : bl L ter o Cr di 1 vor or rr0 0� � 0 � � 0 t. ort .� � rr

JJf!A;J. ..l.U . - - 4- C� � � C SE t O. 587 AC PT co In .. Ventu t y: n o Co. I l � with- tea- ELL � 2. ' en 3� e- consi- i ord r lt. j in this in u ed nd co~ 1 ions e o 1 ie of th

CI I O .. of th c�� J . C B O. 587 - 5- cure rel n 8. e ...ec rwis n and/or to in o. rest, b nk- nc ount r in r � pu 0 led es .

13 . 14. oureh � II ? of it riv fro th r on~ w: r count d for 1 1 1on . n de � profit ,1d s at nt s "co - � A tho .,h one- 0 th ro its w:

D C IO c.�.. . ~ � cj .. � o. 587 - 7- er dtted in f or of Cad~a n r nd n -ha f in favor of t h Br nc11 Of!'ice , t. hole a d clared inco i n th or~ ~� ?~ilipp n in o e tax re rn ( xh. 1 , .B r ec. , ~� G2 � pt b r � or the p riods ro ~uly 1 19~9 to 3 _, 21, 9; d frc ....ept b r 22, 195.J to , 195 , Ca wal s on ui ran ac :to 1 th ~ ~ount of . ) G, �2 . 22 ~nd 141 , 3 . 70 , r sp c t - 1 l y, or tota o , 25.92 on which r pendent se � d .. ro :-.r ':; er,.. n a ~ nd fi ax , incl 1 e of u r c . �r e, in th a' nnt o 18 0 0. 37 ( . ~ �� 4, BIR r c . , � 3 -J9). 11 der Durin the y ars 1 52 , 1 153 an 1954 , c kin en d in 0 e ti blin s , t heref ro�:n g o 1 s in th~ sp ct v s 0 2 5,.)45. 5 ' l 215, l>7 . 24 li 22 , 136. 32 . B 11 vi 1t e f t abl "' a on r it id h ccrre n in oot p rce t e � � bs p �d nt S $;;~ it or nu r' und r ect1on 186 of th t ion 1 Int rn 1 v n Co e , whi ch, ter de uctin t . e a~ount p ida contr cto 's , a o 'ed to ,701 . 59 ' u of P titio.. for vi ) . 11 d d its it 11 b111ty or perc nt t x on h w les of tb ven i n blinds it ufae tu ed, bu stio s h co ut tion of h t p ri . i t he (s M or nd ~for e J.�tioner , C'l 11 r c � � 51). h u s 'tO resolv~ d hi c r: ) t her o no er t he r n s ds be above c 1 w of i s co ci 1 br ! thin t ur- n ction 194(t) of t l i on 1 1 t rn 1 R Cod �' 33L

., �. ISIOJ - c. c ~ u � 5 !':'~ � � ? -8 l"' co 0 r to t he f1rn is ~ t..a , � h th r or ot Cad 1 1ia 1 for 50, nurc h r for �il 1 a1 ur to . return s a 0 r e i 1 br k ) ) or n t r pond nt's thoc Q_ o putin t he s � 1 t x on t~o ar.u.& .. ncturnd v neti blind is eor re t. j r t J et 1tion for r ic , c l r d or c ipt 01 of r en+- ' r � h t t e co ci .. rok ' s c t., r 0 t l r 949 " qt ,.~ rter o :ow ve ' b 11 v tl t on or t re so 1 ai.l..e a er 0 isc ss and p t sa in t e e o 'Dd 1 1 d .,;. SUD ort i p t i io for r.vi � ~ t h tra.: c :!.on� it r- "" i b t loc l or tr d1 th t ! � On the oth t int i ti n G i to 1 a ons t.~it 11 d c in 5 of ot oc 1 u t r and e1J rs. In st.p.Jort of .li con e-ntiop., r ond n t c t 1i e 0 rr or 4 tl .,.pl contr Ct. ' ( h. ) whic e quot

DECISIO - c . . A. Ct\8" o. 5S7 - 9- th lity nor/ot hr e liP ER, in hich case th p rson CD LLA C lC CO - P shal ot b question d 1n court y th UY or y it a e t an / or represent tive.s . u / The contract o its f c r nt Q inconsis- t c1 � 1 it 1 1 t1f s "In nt Ora o � 'IJ t u m in it app ar n t th p rt1e 1 t n- d d t nt r into in nt tra s ction, it, however, r f rs to t loc 1 cl to r as buy r nd th Branch Of fi ce a s sell r (in th conditio s, s ler or seller /or 1 d ntor), h r by in 1 equ l y p t t that t tr n ction intended 1 o ~.e of pu ell nd 1 � While para ra hs 7, 13 provid or r1gh n favor of C d-walla er in h co c pt of ler, conse- quent1y, n tln perso 'lit of ~dentor or brok r , p ragr ph 14, owev , 11. 1t th~? interv nt1on o d- wa 1 d r 1n th trn s ction to h t o . b ke � view of t h s pp r nt 1 con 1 t nt cont actual provi� ion , we sha 1 1v in o the act 4al conduct of th partie to dete ne t nat r~ of the ransactio s nt r din o {Jrtic, 37 , Civil Code; C vo vs. 0 1ves, et al., 6 P 11. 88; t c, Gu .. P ific co. vs . In ular Gov rn ent., 10 Phil . 1 6; Quiro n v � iar ons t r d r Co . , 38 bil . 50 , 50 ) � A aror stat d, Cadw 11 der s cure orders fro oc 1 custo er tor the pt:..rcha o o The ord r , to ther with irrevoc bl 1 tters o credit dawn by th loc 1 customers , wer . trans itt d tot ch or 1c which bo ht the erch ndi e . The er- chandis wa shipp d by th rane Office on its invoice 336

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