CTA Case No. 3996 (Decision)

REPUBLIC OF THE PHILIPPINES COURT OF TAX APPEALS QUEZON CITV INDUSTRIAL TEXTILES MFG. COMPANY OF THE PHILIPPINES INC., ,. C.T.A. CASE NO. 3996 I' COMMISSIONER OF INTERNAL -- REVENUE, M- - - - - - - - - R�spond�nt.- )( D E C :J: S l: 0 N This is a claim for refund of thR a�ount of P529,813.80 representing excess income tax for the year 1984. On March 27, 1985, petitioner filed its final income tax return for the tax year' 1984, showing zel"'o income tax liability and income tax payments. On June 27, 1985, petitioner filed a clailll for refund with the respondent for thR amount of P529,813.80 representing excess inco111e tax paid for' the year 1984 as follows: Prior ytar'� txc111 inco11 tax ,,,,,, P 40,cm.oo Incolt tax paid for ltt Qtr, 1~ ���� P2711053.00 lnealt tax paid for 2nd atr. 1~ .. .. 18717S6.00 ~58,809.00 TaiCtl Mithhtld by1 30,010.00 Atla1 Ftrtiliztr Corp. ,,,,,,,,, 11,320.80 --����- p 529,813.80 Htrald Publication� ,,,,,,,,,,, 17,640.00 Ban Migutl Corp. ,,,,,,,,,,,.,, l,OSO.OO

DECISION CTA CASE NO. 3996 -2 Petitioner was unable to offset the excess tax payment because it has ceased manufacturing operations and does not have nor will it have any forseeable income against which the said refundable amount may be credited, and that the final i nco11e tax return filed on March 27, 1985 has showed on its face that the amount of P529,813.80 was refundable as excess payment. Respondent has not acted on the claim for tax credit. Hence, petitioner filed its judicial claim for refund of P529,813.80. During the pendency of this case before this court, petitioner manifested that on July 29, 1987, it received TW No. B 05714942 dated July 29, 1987 for P415,198.00 representing partial approval by the respondent of the total clai111 fot" t"efund of P529,813.80. Consequently, only the balance of P114,61~.80 remains to be resolved by this court. Petitioner had presented evidence to prove that it had filed in 1984 the 3rd quarterly income tax return <Exh. D>; and the fact of loss; and the reundable amount of P529,813.80; and the creditable withholding tax on rental of the total amount of P30,010.80 (Exhs. 0-1, D-2 and D-3>.

DECISION CTA CASE NO. 3996 - 3- In a me111orandum to the Commissioner of Internal Revenue dated Nove111ber 6, 1986, Chief Revenue Enforcement Officer Abelardo C. Co111ia recommended that the reduced amount of P529,463.80 be granted as tax refund in favor of petit i onet" Industrial Textiles Man�.tfacturing Co11pany of the Philippines <Exh. F, pp. 52-53, CTA rec.>, and was recommended for approval by Vicente Y. Puno, Chief, Manufacturing Division II of the Bureau of Intern~l Revenue. <Exh. F-1, p. 51, CTA rec.) \ In v i e w of the o v erwhel ming evidence presented in thi s case , t his court is con stra ined to grant a tax r fund of P529, 463.80, i t having been shown th a t t he amount of P350.00 wa~ paid on April _ 1983, beyond the prescriptive period of two years. Deducting from P529,463.80 the sum of P415, 198. 00, representing part i a 1 approval by the respondent of its claim, there st i 11 remained the refundable amount of P114,265.80. WHEREFORE, the refund of oi' P114,26~.80 representing excess inca�� taM paid for the year 1984 is hereby granted. Without pronounce�ent as to costs.

DECISION CTA CASE NO. 3996 - 4- SO ORDERED. Quezon City, Mett"o Manila, June 7, 1991. ROAQUIN Judge WE CONCUR1 ~Z.RE ,JI ~ding Judge e.~'\Q. Q.....){.. ERNESTO D. ACOSTA Associate Judge C E RT I F I CAT I 0 N ..... I hereby certify that this decision was reached after due consultation among the members of 'the Court of Tax Appeals in accordance with Section 13, Article VIII of the Constitution. esiding Ju ge Court of Tax Appeals