CTA Case No. 4041 (Decision)

REPUBLIC OF THE PHILIPPINES COURT OF TAX APPEALS QUEZON CITY JARDINE FLEMING (PHILS.), INC., Petitioner-~ - ver-sus - C.T.A. CASES NOS. 4041 & 4125 COMMISSIONER OF INTERNAL REVENUE, :.: - - -- - Respcmdent. - - - - - -- }! DEC I I DN The cases above-captioned come on identical factual situation an d common issue on a claim for- r-efund/tax cr-edit of an alleged over-paid income ta:�:es �for- the year-s 1984 and 1985 aggr-egating a total amount of F'39~304.00. As i t appear-s~ petitioner- domestic cor-po r-ation fil ed its cor-por-ate (final adjustment) income ta>: r-eturn for- the taxable year- 1984 on Apr-il 12~ 1985 whi ch r-eflected a net loss of F' 33 4~076.00 after- deducting P585~341.00 fr-om a gr-oss income of P251~265.00 and a "nil" ta :�: l i a b i l i t y (E:�:hs . A~ A-1 ~ and A-::::;) � However-~ petitioner- had a cr-e ditable wi thho 1 ding ta:�: of F' 10 ~ 451.05 on i t s income fr-om management advisor-y ser-vices (Exhs. B~ C~ D~ and E)

DECISION CTA CASES NOS. 4041 & 4125 - 2- \.'Jhich remained unutilized in view of the net loss for the said year. As a consequence~ petitioner filed an administrati v e claim on March 17~ 1986 and in s iituted a judicia l action on March 21~ 1986 (C.T.A. Case No. 4041) for the refund thereof. Before any resolution can be had on the claim petitioner applied the same against income ta x 1 iab.i 1 i ties of the succee~:ling year 1985 under the automatic credit sc heme that "the refundable amount shown on its final adjustment return may be credited against the estimated quarter income tal�: 1 iabi 1 i ties �for the ta :�:able quarter of succeeding ta:�:able year" (Sec. 69~ Ta>: Code). Again~ on April 9~ 1986~ petition er fil ed its corporate annu a l (f i n al adjustment) income ta:�: return �for the ta:�:able year 1985 which likewi se reflected a net loss o �f F'196~ 712 .00 and a "nil" ta:�: due (E x h s. A~ A - 1~ A-3 and A-6). As of December 31~ 1985 petitioner had a total creditable income taxes of P39~304.00 inclusive of the F'10~451.05 earlier credited (Exhs. B~ C~ D~ E~ F, G~ H~ I and J). Thus alleged~ inasmuch as the petitioner suffered losse s and had no income ta:�: 1iabi 1 i ties agai.nst which it can credit the tota 1 cred .i table ta:�:es withheld an overpayment of

DECISION CTA CASES NOS. 4041 & 4125 - 3- P39~304.00 resulted. On October 1986 petitioner requested the respondent for confirmation that it could credit the refundable amount of P39,304.00 against its income tax liabilities in 1986 and succeeding years pursuant to Section 69 of the Tax Code and~ in the alternativep sought refund or taH credit therefor. And neither confirmation nor denial Wci:\S forthcoming when the petitioner filed the instant petition on December 20 ~ 1986 ~ docketed as C. T. A. Case No. 41 2 5. Addressed is the validity of petitioner's c 1aim for refund of an excess income tax payments for taxable years in question. It does not appear that the respondent presented any evidence controverting the correctness of the returns and other material facts~ As a factly matter~ respondent submitted the cases for decision on the basis of the pleadings and records after petitioner rested its cases. "Since one who prays for judgment o n the pleadings without offering proof as to the truth of hi s allegations~ must be understood to have admitted the truth of all the material and relevant allegations of the opposing party and to rest his sn~

DECISION CTA CASES NOS. 4041 & 4125 - 4- motion for- judgment on the allegations taken together- with such of his own as ar-e admitted fBauer�ann v. Casas, 10 Phil 386; Evang�Iista v. De Ia Rosa, et al �.� 7c: Phil 115) r-espondent may be consider-ed as not qLiestioning ser-iously petitioner-� s en tit lemen t to its c 1aim for- r�efund. Mor-e so~ when the evidence pr-esented which wer-e not disputed by r-espondent sufficiently established petitioner-'s r-ight to the refLmd Hanage�ent and Service Corporation v. Co��issioner of Internal Revenue .� CT A Ca :.=:e No. .3232 .� ~7un e 2tE� .� 1'."~85) � " Wr-apped up~ the cases befor-e Us har-dly per-sents a gr-ipping question. As thus shown the basis for- the claim is not shor-t of specific suppor-t in ter-ms of tr-actable data openly laid and fully disclosed. Going by the r-ecor-ds~ petitioner-'s income tax r-etur-ns for- the taxable year-s in question have indeed shown losses and excess cr-editable wi thhel d income tax payments~ which r-emained app lied for- any tax liabilities dur-ing the taxable year-s. Respondent points to no factual er-r-or-s nor- super-fluities which need be abr-idged. Respondent has not issued any deficiency assessment nor- disputed the cor-r-ectness of the {

DECISION CTA CASES NOS. 4041 & 4125 - 5- returns. The records make it clear that the requisite statements and/or certifications of income tax withheld and deducted by withholding agents through which respondent collected the taxes and upon 11-1hich tacked the c !aimed refund furnish the basis for a definite resolve. As thus~ both circumstances obtaining and relevant legal standards compel the conclusion that petitioner had proved entitlement to a favorable determination of the desired relief. WHEREFORE, re~pondent is hereby ordered to grant the refund of the amount sought by the petitioner without pronouncement as to costs. SO ORDERED. Quezon City~ Metro Manila~ October 31~ 1991 . .2:.~ Presiding Judge WE CONCUR: tlut~--- 1 CONSTANTE C. ROAQUIN Associate Judge / ~~t&_Q~ ERNESTO D. ACOSTA Associate Judge 51l

DECISION CTA CASES NOS. 4041 & 4125 - 6- CERTIFICATION I her-eby that this decision reached after due consultation among the members of the Court of (.)ppeals in accordance v1i th Section 1 3 , Article VIII of the Constitution. � ~~ Court of Tax Appea l s 51?