CTA Case No. 4706 (Decision)

fh? p u b 1 i c of the Ph i l i. p p in~ s .COURT OF' TO)( JQPPEOL S Quezon City ANTONI O MODESTO AQU I NO, P e t i t i OTH~r~, C. T.A. CASE NO. 4706 COMMISS IONER OF INTERNAL REVENU E, Res panel e n t. X ---------------- ------- X DE C s 0N In 1982, Autos phe re n c., a~qu i red from Del t a Motors Corro r ~ tio n seve r a mo tor ve h i cl es f in a nc e d Pet't i oner An to nio Aq uino a nd Co n rmdo Aqui no ex ecuted t~ust r ecei pts a nd s u ret y agreem e n t in f a vor of Filinve s t to sec u re t h e . perfo rmance of s A utosph ~? r~ ~?' obli g atio n to the l a t t e r . both conr..; t i t l.\�tc�cl jn favc>r~ c>f Fi l invec:t estate loca ted i n Q 1.1e z on City a n d cc>v rn~ed by TCT N o . . ~::C::7GS8 . Sai d p arce l of land is owne d b y peti t ioner . Fi l i n vest f oreclose d t he . af o resai d r ea l e s tate mo r tg a g e beca u se o f A ~ tos p h ere's fai l ure t o pay its e obl igatio n . B ing tt1.. highest bidder~ i n t he a mount 0 f pg r::35 1 (H)(l. (l(l 1 the property was a warde d in f a vot~ o f Filinvent.

- DECISION - C. T. A. Case No. 4706 ,�:_::_. Petitioner and Conrado Aquino failed to redeem the property and title was consolidated in f a vor of Filinvest. On Mat~ch 8, 1'388, the BIR se nt petitionet~ a Notice of Assessment at the latter's residential address and a subsequent notice to ,.. his new residential address. On ' Nove mbet~ 5 1'3'30, he pr~otested the assessment in writing. The BIR denied the protest of which denial petitioner was notified on Mc.�wch � 1 3, 19'31. The BIR's denial was based on the allegation that petitioner's protest was filed out of time and the assessment had become fi n al and execut rn~ y. R warrant 6f distraint/levy was sent to petitioner but which petitioner s ought to have set aside or reconsider. On September 1'3'31, the BIR directed petit i oner. to pay the deficiency capital g ai ns tax in the .) amount of P277,760.00 within fifteen (15) days from his receipt thereof. Hence, this appeal. The sole issue ppsed in this case is whether o r not appeal befor~ ' this Court had been filed beyond the reglamentary period.

..1 - DEC I SION - C.T.A. Ca s e No. 470 6 In the case a ppe a l-� : that ~- e s p o n d f. n t ' ':3 f i n c~d d t? c :i. ~; i o n ( An n e >< A C T 11 11 ~1 R t?c o ~., d s ) , d at �> d S e p t e mb e ~- 9 , 1 'J 9 1 \I'J a s ~- e c e i v e d b y p e t i t i o n e t ' o n December 19, 1991,the corre s ponding petition for r~v ie w was filed o ut of time on Jan u ary 20 , 199c:. C o n s i d e ~ , i n !] that more than thirty <30) c.1c:y s h ad li:\p S�~d, the Cc>ur' t s ubmits that it is a l rea d y time barred. 1�-1 e ~- e , ~? >�::I c t l y t h i t' t y �--t wo <3 ;:;: ) days had passed before appeal before this Court was p e ~., f e ct r: d, henct?, the A s st~s sment in question h c3. S a l t' f:' .:~d y b e c o me f i n a 1 , C-! >< e c 1.1 t CH' y a.n d incontestablr! pursuant to Section 7 and 11 of Republic Act 1125. The pertinent provision is hereby t' e pt'O d U.C e d f C) t ' compal'i son: Secti o n 11. Who m;51y appeal; e.�ffect of' i!:!ppr:.� <J:. .l.� Any pe t"son, as~;oci <Oitieon ot' C Ol'pGt'ation acversely affected by a decisio n or ruling of the Commissioner of Internal Revenue, the Collector of Customs or a n y provincial or city or Board of Assessment Appeals may f i l P. .-an c3. p p e a 1 i n t h e C o u t ' t IJ -F T�" >< r-lr.�peals within thit-ty days aftr.�?t' t he r eceipt of such decision or l�'ulinr,~� It is a funda m e n ~al rule that inorder for t he Cou rt to take cogn i za~te of a case , i t i s n e c e s sary h o wever that claims of this nature must be bt~ o u gh t w ith this Court within thirty days ft~om t"eceipt of ..1 /{ t

- DECISION - C.T.A. Case No. 4706 the final decision of the Commissioner of Internal Hevenue denying such claim, wanting in such requirement would prove to be jm~isdict ional. Failure of the petitioners to appeal to the Court of Tax Appeals in due time made the assessment � in question, final and executory and . demandable. (Dayrit vs. Cruz., 165 SCRR 571.) Failut~e of taxpayer to appeal to the Court of Tax Appeals in due time makes the assessment f inal, executory and c:lemandabl e and the taxpayer is disputing the correctness of the assessment. (Republic vs. Court or Rppeals., 149 SCRR 351J. failing to avail of such requirement the assessment of the Commissioner of Inte t~na l Revenue appealed from had already become final, ex ec utory and demandable for failure of the taxpayer to perfect his appeal to the Court of Tax Appeals within the reglamentary period of thirty days. Moreso, the commencem en t of t~e statutory thirty-day period cannot be dependent on the will of the taxpayet~ v1ho is placed .in a position to put off indefinitely an~ at his conve nien ce the finality of a tax ass~'sment. /

DECISION C.T.A. Case No. 4706 - 5- I IN VIEW OF THE FOREGOING, judgement js hereby re nd mr ed dismissing the p eti tion f or lack of mer it. Petitioner' is h ereby ordered to pay to the respondent t he amount of P277,760 . 00 as deficiency capital gai n s t a x. SO ORDERED. . Cl 11 ezo n C ity, Mett'o Ma nil a, June 15, 1'J9 3 . ~L WE CONCUR: r I hereby certify that th is decision was reached afte r due co n su ltation a mong the members of th e Court of Ta x Appeals in accordance with Secti on 13, Aricle VIII of th.~.. ' Cons t itution � C2~lDQ~ ERNESTO D. ACOSTA Presi ding J udge Col.l t't ' of Tax Appeals