COMMISSIONER OF INTERNAL REVENUE v. CONAL HOLDINGS CORPORATION

REPUBLIC OF THE PHILIPPINES COURT OF TAX APPEALS QUEZON CITY ENBANC COMMISSIONER OF INTERNAL CT A E B NO. 1732 REVENUE , (CTA Case No. 9099) P etitioner, -versus- Present: Del Rosario, P.J., Castaned a, Jr., Uy, F ab on-Victorino, Mindaro-Grulla, Ringpis-Liban, M an ahan, Bacorro-Villen a, and Modesto-San P edro, ]]. CONAL HOLDINGS CORPORATION, P romuJ.gated : Resp o n den t. NQifl ~ X-------------------------------------------------------------------------------------------- -----------X d :/~~. RESOLUTION RINGPIS-LIBAN, J.: For resolutio n is the petitioner's "iVIo tio n for Reconsideration" 1 flied on May 24, 2019, with resp ondent's Comment, flied on August 13, 201 9. In the instant mo tion, petitioner avers that the Court En Bane erred in affirming the ruling o f the Court in Division that respo ndent is not liable for deficiency Expanded Withholding T ax (EWT) on its income payments made to the City G overnment o f Iligan; that the N ational Internal Revenue Code (NIRC) of 1997, as amended imposes a duty upon respondent to withhold taxes from the income payments it made to the City of Iligan; and that respondent is not being assessed for deficiency EWT as a taxpayer, but being penalized as an agent of the government who failed to comply with its legally mandated duty to withhold taxesj./ 1 Docket, CTA EB NO. 1732, pp. 139-149.

RESOLUTION CTA EB NO. 1732 (CTA CASE NO. 9099) On the other hand, respondent states that petitioner's arguments are mere reiterations of the previous arguments in the Petition for Review and Memorandum which were already considered by the Court in Division; that respondent's payment to the City of Iligan for the purchase of the Iligan Diesel Power Plants is not subject to EWT; that respondent's income payments to the City of Iligan for the purchase of the Iligan Diesel Power Plants are specifically excluded from the coverage of withholding tax under Section 2.57.5 (A) of Revenue Regulations (RR) No. 2-98, as amended; that the City of Iligan performed an essential governmental function when it sold the foreclosed Iligan Diesel Power Plants to respondent; that the said transaction is exempt from tax, hence, respondent does not have obligation to withhold EWT on its payment to the City of Iligan. After consideration, the Court En Bane resolves to deny the "Motion for Reconsideration." The Court En Bane reviewed the grounds relied upon by petitioner in support of his "Motion for Reconsideration" but finds no cogent reason to grant the same. The issues raised and the arguments presented in the instant "Motion for Reconsideration" are the same issues and arguments he presented before the Court in Division, and in the present Petition for Review which have already been passed upon, discussed and judiciously resolved in the assailed Decision dated May 3, 2019. It must be stressed that among the ends to which a motion for reconsideration is addressed, one is precisely to convince the Court that its ruling is erroneous and improper, contrary to law or the evidence.2 If the movant failed to do so, the motion for reconsideration must necessarily fail. Considering that the issues and arguments presented in the instant motion are the very same arguments which petitioner stated in his Petition for Review, the Court finds it needless to reiterate the discussions made in the assailed Decision. WHEREFORE, premises considered, the "Motion for Reconsideration" is DENIED for lack of merit. The assailed Decision dated May 3, 2019 is AFFIRMED. SO ORDERED. (j)v,. ~/ MA. BELEN M. RINGPIS-LIBAN Associate Justice 'Teodulo M. Coquilla vs. The Han. Commission on Elections and Mr. Neil M. Alvarez, G.R. No. 151914, July 31, 2002.

RESOLUTION CTA EB NO. 1732 (CTA CASE NO. 9099) WE CONCUR: Presiding Justice QJL.u C; c. G;t~ ~,9. ERL~P.UY JffANiTo c. CASTAJ\mDK, JR. Associate Justice ustice ~ N.AA~..'..lA.o.._ 6~ CIELITO N. MINI'>ARO-GRULLA Associate Justice ~~�r-~ CATHERINE T. MANAHAN Associate Justice NO PART~ (on official time) MARIA ROWENA G. MODESTO-SAN PEDRO Associate Justice